Claiming a Niece as a Dependent

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

Qualifying Child Option:

Your niece can be claimed as a qualifying child if she meets all seven dependency tests. For the relationship test, a niece qualifies as a descendant of your brother or sister. [1] She must also meet the age test (generally 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 would need to meet the relationship test (which she does as your niece), the gross income test (her gross income must be below the threshold), and you must provide more than half of her support. [2]

Additional Requirements:

Regardless of which category she falls under, she must also pass the dependent taxpayer test, joint return test, and citizen or resident test. [2]

Would you like help determining which specific tests apply to your situation?