What is one of the Four Tests for a Qualifying Relative?

The correct answer is related to the gross income test for a qualifying relative under the IRS guidelines. This test stipulates that in order for an individual to be considered a qualifying relative, their gross income for the year must be less than a specified threshold, which is adjusted periodically for inflation. For the tax year 2022, for instance, this threshold was set at $4,400. This measure ensures that qualifying relatives do not have significant income on their own, qualifying them for dependency status.

In contrast, other criteria such as age or joint return claims apply to different contexts, like qualifying children or specific tax filing statuses, rather than being specific indicators for a qualifying relative. Permanent residence may have its significance in determining residency, but it does not inherently relate to the qualifications that establish someone as a qualifying relative for tax purposes. Understanding these criteria allows for proper application of tax regulations regarding dependents.