Income Requirements

If you are claimed as a dependent on someone else's tax return, you only need to file your own tax return if your income exceeds certain thresholds. For the 2010 tax year, a dependent who is single files a tax return if earned income (from working) exceeds $5,700 or unearned income (such as from investments) exceeds $950. A return is also required if combined income is more than the greater of $950 or earned income (up to $5,400) plus $300. Income thresholds are different for dependents who are married or older than 65.

Dependent Child

Dependent children are under age 19 at the end of the tax year or under age 24 and full-time students. Qualification as a student requires full-time school enrollment for some part of at least five months during the tax year.

A dependent child usually lives most of the year with the parent claiming the exemption. However, this custodial parent may grant the exemption right to the noncustodial parent. A child is considered to be living with the taxpayer when absences are temporary due to education, illness, business, vacation or military service.

Qualifying Relative

You are a qualifying relative for the purpose of being claimed as someone's dependent if that person provided at least half of your annual support and you either lived with that person all year or for more than half of the year. You also have to be related to the person claiming you as a sibling, half-sibling, step-sibling, parent, step-parent, grandparent, aunt, uncle, niece, nephew, child, stepchild or descendant of a child. A qualifying relative's income must not exceed the personal exemption amount -- $3,650 for 2010 tax returns.

Filing Status

Someone who provides the home where you live and pays more than half the costs of maintaining the household is entitled to claim you for filing as head of household. The lower tax rates for this filing status are available for that taxpayer even if you claim yourself as a personal exemption on your tax return.

Earned Income Credit

A child who meets the age requirements for a dependent and lives with a taxpayer in the United States for more than half the year is a qualifying child for the Earned Income Tax Credit. The taxpayer may claim the child for this credit without claiming the child for a dependency exemption.