What is the income limit for a dependent for 2018 tax?

[singh]

How much a dependent will earn which will disallow him to be a dependent?

[TaxGuyBill · Accepted solution]

The limit for a Qualifying Relative is $4150.

There is no limit for a Qualifying Child.

[TaxMonkey]

Interesting question, you know that the dependent exemption no longer exists in 2018 right?  So are you asking about the child tax credit, or something else?

[TaxGuyBill]

Technically it exists, but the amount is $0.  

Fortunately, the change to $0 does not affect other things, such as the threshold to claim a Qualifying Relative (which can potentially mean a $500 credit for the person claiming the dependent).

[singh]

What I actually meant was - if a relative lived with me over half the year and meets all other qualifications up to how much the relative can earn then I can claim him. Last year the limit was the exemption amount. Since there is no exemption amount this year so how do I decide if I can claim him.
My understanding is the limit is $1050 plus $350.
Your input is appreciated in advance.

[TaxMonkey]

The language that you are using makes it very difficult to answer your questions.  A qualifying child must live with you for over half the year, but they do not have a gross income test - they just cannot provide over half of their own support.  A qualifying relative, either does not have to live you with you at all, or if not actually a relative, must live with you for all 12 months.  A qualifying relative cannot have a gross income more than $4,150 in 2018.

The limit that you posted is a tortured version of the standard deduction for dependents which is the higher of earned income + 350 or $1,050, but does not have anything to do with the gross income test for a qualifying relative.

[singh]

Thank you, Tax Monkey, your answer has clarified all my doubts. I very much appreciate the way you explained.