In tax definitions, what is a "dependent"?

A "dependent" in the context of tax definitions refers to a qualifying individual that taxpayers can claim on their tax return to potentially reduce their tax liability. This classification is significant because it allows taxpayers to take advantage of various tax benefits such as exemptions, credits, and deductions, which can lead to substantial savings.

To qualify as a dependent, certain criteria must typically be met, including relationship, residency, age, and support requirements. Dependents can include children and certain other relatives who live with the taxpayer and for whom the taxpayer provides a significant portion of financial support. This mechanism is designed to acknowledge the financial responsibility placed on individuals who support others financially.

In contrast, the other options do not correctly define a dependent. An employed individual within a household does not inherently qualify as a dependent unless they meet the specific requirements set forth by tax regulations. A non-resident foreign national may not meet the qualifications necessary to be considered a dependent under U.S. tax definitions. Lastly, an individual claiming tax credits may not necessarily be classified as a dependent, as tax credits can be claimed based on various factors independent of dependent status.