Which of the following is NOT included in gross income when determining a qualifying relative?

When determining a qualifying relative for tax purposes, it is essential to understand what constitutes gross income. Gross income includes all income a person receives in the form of money, goods, property, and services that are not exempt from tax.

Scholarships used for tuition are not included in gross income. This means that when a student receives a scholarship solely to pay for tuition and associated fees, those funds are not counted when assessing someone's income for qualifying relative status. This is important because qualifying relative guidelines often involve income thresholds, and excluding scholarship amounts from gross income can sometimes help a dependent meet these thresholds.

In contrast, taxable unemployment compensation, taxable Social Security benefits, and gross receipts from rental property are all considered gross income. Therefore, they contribute to the overall income assessment for determining a qualifying relative. Understanding these distinctions is crucial for tax planning and ensuring accurate reporting for dependents.