How much can your Dependent earn?

This depends on the type of dependent you are claiming.

There are two types of dependents: qualifying child dependent and other dependent

A qualifying child dependent must be 18 or younger, or under age 24 if a student, at the end of the tax year you are filing and have lived with you for at least half the year. As long as these requirements are met, a qualifying child can have any amount of income and still be claimed as your dependent.

Other dependent could be relatives who must have had more than half their support provided by you and must be related to your or have lived in your household for the entire year. A child who does not meet all the requirements for qualifying child may be claimed as a qualifying relative. However, qualifying relatives must earn less than a max income level (which for tax year 2020 was $4,300) in order to qualify as dependent. This number may change in 2021.

A non-related person who lives in your household the whole year and earns less than the max income level above can also be your dependent.