Claiming Niece as Dependent

Yes, you may be able to claim your niece as a dependent, but she must meet all seven dependency tests. A niece can qualify as either a qualifying child or a qualifying relative.

Qualifying Child Option:

Your niece can be a qualifying child if she meets the relationship test, which includes descendants of your siblings, such as nieces and nephews [1]. She must also satisfy the age test (under 19, or under 24 if a full-time student), residency test (lived with you more than half the year), and support test (did not provide more than half of her own support) [1].

Qualifying Relative Option:

If your niece doesn't meet the qualifying child tests, she may still qualify as a qualifying relative. She must meet the relationship test (which she does as your niece), the gross income test (her gross income must be below the threshold), and the support test (you must provide more than half of her total support) [1].

General Requirements:

Regardless of which category she falls under, your niece must also meet three general tests: the dependent taxpayer test (you cannot be claimed as a dependent on someone else's return), the joint return test (she cannot file a joint return with a spouse, with limited exceptions), and the citizen or resident test (she must be a U.S. citizen, national, resident alien, or resident of Canada or Mexico) [2].

What specific circumstances apply to your niece's situation? This will help determine which dependency category fits best.