He was living with us for his entire jr. and sr. year - (and was still under 18) and only had an allowance from working the family business part time. We had to first make sure his dad wasn't claiming him as a dependent on his taxes that year - and since that goofball had decided that Obama wasn't his president, he was refusing to pay the IRS...so it wasn't a big deal at the time. We just identified the allowance as "extra income" for the household, and went on from there.
The IRS does answer this question...
https://www.irs.gov/publications/p17/ch03.html
As you can see, roommates or "friends" where there is no legal contract or relation cannot be considered dependents.
First, there has to be some form of recognized partnership or relationship for another person to start to be considered a dependent for tax purposes.
For non-related dependents - like a couch-surfer staying with you on a "help out for for food and board" situation, they could possibly be treated as an employee and be deducted in that manner, with a lodgings and support benefit established as being considered "equivalent pay" for the light cleaning they're supposed to be doing around the house.
However, going that route will also require you pay extra in taxes, to cover the fees and taxes an employer is responsible for.
One of my bosses was doing that with a live-in maid who is also working as a contract cleaner on the side. He ended up paying less in the taxes and fees compared to what he didn't have to pay the woman to clean their place three days a week and stand by for parties as part of her room and board.
We still claim our daughter, even though she's now 24 and most of the time not living with us. We cover more than half her expenses and upkeep - including child care for her oldest child, whom we have legal guardianship of, and her insurance is through my employer. She doesn't really count for much, but it almost covers what we're shelling out to keep her fed and clothed.
We went through a tax advisor for the BF (now unemployed husband) and from what I can see, most online tax programs ask the questions that will identify whether or not the person can be considered a dependent.
All this is still anecdotal and should not be used as actual tax advice - there are still Tax liabilities there that you may or may not need to address, so make sure you have all documents, including receipts of the "dependent's" accounts you pay . And be aware that any income that person has made over the year needs to be claimed if they are also going to be a dependent, whether it's enough for them to file separately or not.
Haele
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