The new tax law changes the definition of dependent for most tax purposes by attempting to establish a uniform definition, including the definition applicable to HSA's.  Most people will not find themselves affected by the changes.  The new rules apply in 2005.

Under the new law, a individual must be either a qualifying child or a qualifying relative.  A qualifying relative is one that meets the five tests that applied previously. A qualifying relative is anyone who meets the five tests but does not meet the definition of a qualifying child, e.g., a child of the taxpayer not treated as a qualifying child (due to the age limits) or
an individual who is a member of the taxpayer's household for the entire year.  A qualifying child is one that satisfies five conditions that are different from those for a qualifying relative. 

They are:

1. The child must be the taxpayer's son, daughter, stepson, stepdaughter, eligible foster child or descendant of such a child, or the taxpayer's brother, sister, stepbrother, stepsister or any descendant of any such relative. These categories applied previously to dependents in general.
   
   
2. Age. The child must be under the age of 19 (or under the age of 24 and a full-time student).  This is not a change.
   
   
3. Citizenship/Residency. The child must be a citizen or resident of the United States, or a resident of Canada or Mexico.  This is not a change.
   
   
4. Principal Residence. The child must have the same principal place of abode as the taxpayer for more than half of the year.  This is not a change.
   
   
5. Not Self-Supporting. The child must not have provided over half of his or her own support.  This is a change.  The taxpayer no longer has to provide half of the support.

The new law provides rules for cases where more than one taxpayer may claim a dependent.