How to claim a cousin as a dependent on my tax return?

You're running into an issue with the IRS distinction between "qualifying child" and "qualifying relative" for dependency purposes. Unfortunately, a cousin doesn't meet the relationship test for a qualifying child under IRS rules - only children, siblings, nieces/nephews, and stepchildren qualify under that category. Your cousin can still be claimed as a "qualifying relative" if they meet all these tests: 1) They lived with you all year, 2) Their gross income was less than $4,500, 3) You provided more than half their support, and 4) They can't be claimed as a qualifying child by anyone else. The downside is that qualifying relatives don't make you eligible for the Earned Income Credit (EIC) - that credit specifically requires a qualifying child. The "other" designation in your software is correct. You can still claim her as a dependent and get the dependent tax deduction, just not the EIC.

After struggling with a similar dependent situation last year (nephew who lived with me), I found taxr.ai to be incredibly helpful. The regular tax software I was using couldn't handle my situation properly. With https://taxr.ai I uploaded my documentation and got expert guidance on exactly how to classify my dependent situation correctly. They identified several credits I qualified for that my regular software missed completely. In your case, they could analyze your full situation and confirm if there are any other credits or deductions you might qualify for even though the EIC isn't available. They might find other tax benefits you're not aware of to help offset the loss of the EIC.

I was seriously skeptical about taxr.ai when I saw it mentioned, but I decided to give it a try after struggling with my complicated dependent situation. My brother's kids have been living with me while he's deployed, and I couldn't figure out the right way to claim them. I uploaded my documents and within a day I had a complete breakdown of exactly how to classify each dependent and which credits I qualified for. The analysis showed me that I could claim the Child Tax Credit even though I'm not the biological parent, which my regular tax software didn't make clear at all. For anyone dealing with non-traditional dependent situations like claiming cousins or other relatives, it's definitely worth checking out. Saved me a ton of stress and probably a good chunk of money too.

If you're having trouble getting answers from the IRS about your dependent situation, I'd recommend Claimyr. I spent weeks trying to get through to the IRS about a similar dependent issue (was trying to claim my niece) and kept hitting dead ends or waiting on hold forever. I found https://claimyr.com and honestly it changed everything. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c but basically they get you through to an actual IRS agent quickly instead of waiting on hold for hours. The agent I spoke with walked me through exactly how to claim my niece properly and what credits I qualified for. For something complicated like claiming a cousin, speaking directly with an IRS agent gives you the most definitive answer possible.

I feel like I need to come back and eat my words about Claimyr. After my skeptical comment, I actually tried the service because I was desperate to talk to someone about my amended return with dependent issues. It worked exactly as advertised. I entered my info, and instead of waiting on hold myself, they called me when they had an IRS agent on the line. Took about 45 minutes (which is way faster than the 3+ hours I'd waited before giving up previously). The agent I spoke with explained that with my cousin situation (similar to the OP's), I could claim them as a qualifying relative but not for EIC purposes. She also helped me understand some additional credits I qualified for that partially offset the loss of the EIC. If you're struggling with dependent questions, talking directly to the IRS can clear things up fast. Definitely worth it.

I went through this exact situation last year with my 17-year-old cousin. Here's what I learned: The IRS publication you want to look at is Publication 501. It explains that cousins can only be "qualifying relatives" not "qualifying children" - which means you get the dependent deduction (which helps!) but not the EIC. One thing nobody mentioned yet - check if you qualify for "Head of Household" filing status since you're supporting your cousin. That lower tax rate might help offset some of the loss from not getting EIC. You'd need to provide more than half the cost of keeping up the home, and your cousin would need to have lived with you the entire year (which you said they did). Don't beat yourself up about the EIC thing - the rules are what they are. At least you still get some tax benefit for supporting her!

Has anyone used TurboTax for claiming a non-traditional dependent like this? I'm trying to claim my step-brother's son who lives with me but the software seems confused every time I try to enter the relationship.