For a Qualified Relative's Gross Income--is all of the proceeds from a non-qualified distribution of a Traditional IRA considered as part of "Gross Income"?

And do we know the limit for 2016 (I know 2015 was $4000)

A person's gross income includes distributions from a traditional IRA.

To claim a qualifying relative (for Head of Household filing purposes), the relative must have gross income less than $4K for 2015. I don't know what that limit will be for 2016, but must likely will be somewhere between $4000 and $4200.

ebaines has it covered.