my husbands niece has lived with us for the past year , and she also recieves social security disabilty benefits , how do i claim her on our taxes this year

“my husbands niece has lived with us for the past year , and she also recieves social security disabilty benefits , how do i claim her on our taxes this year?”----->As long as the Soc Sec disability income is ONLY her income, then it is NON taxable UNLESS her(as your dependent) unearned income(interest / dividend) was $950 for 2011, or her earned income9salary/wage) was over $5,700; OR her gross income was MORE than the larger of $950 or her earned income(up to $5400)+$300. For example, assume that she is claimed as your dependent and has her unearned interest income of $1,000 for 2011, then as $1,000>$950 for 2011, she ,as a dependent, needs to file her return. To claim her as your dependent( I mean as a qualifying relative), For 2011, her gross income(NOT including Soc sec benefits)should be less than $3,700; You provide more than half of the dependent's total support during the year, 2011; If the niece(the dependent) is married, the dependent cannot(should NOT) file a joint return with his or her spouse; she is not required to live with you under the IRS definition of a relative.You and your husband, ,on your joint return, can claim her as your dependent on 2011 return;however, you(NOT your husband) CAN’T claim her as your dependent as she is NOT related to you by blood.