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Income test for new dependent definition


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Guest Ozzie
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Can anyone explain how to determine the income limit used in the income test for a qualifying relative? All the articles I have read refer to the 2005 limit being $3200 but I do not see where that dollar amount is determined. §151(d) is referenced but I am missing the connection. Is the exemption amount of $2000 in §151(d)(1) an indexed amount? Any assistance that can be provided would be much appreciated. Thanks!

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