Under the qualifying relative gross income test, which statement is true?

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The key idea is that the qualifying relative must have gross income below a set annual threshold. The IRS defines a specified annual amount, and if the relative’s gross income for the year is less than that amount, they pass the gross income test and can be claimed as a dependent (assuming the other tests—relationship and support—are also met). If their gross income is equal to or greater than that threshold, they fail this test and cannot be claimed as a qualifying relative. So the statement that gross income must be less than the specified annual amount is the correct one. The other options aren’t right because income can be above zero and still qualify if under the threshold, income greater than the threshold disqualifies, and gross income does matter for this test.