Claiming a dependent

Forum|Forum|2 years ago
March 8, 2024
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If my child is 21 or older do I have to claim them as a dependent? They are a full time student. If I don't claim them they will get the "American Opportunity Tax Credit". I don't qualify for that credit. Will I get in trouble if I don't claim them so they can get the "American Opportunity Tax Credit"? Thanks.

leeloo

If your child qualifies as your dependent, you must claim them. Omitting them from your return in order for them to reap a beneift they would not normally be entitled to, is not permitted.

https://turbotax.intuit.com/tax-tips/family/rules-for-claiming-a-dependent-on-your-tax-return/L8LODbx94

https://www.irs.gov/help/ita/whom-may-i-claim-as-a-dependent

Hal_Al

Employee

Q. Will I get in trouble if I don't claim them?

A. No. You are allowed to forego claiming your student-dependent. But, they still can't get the "American Opportunity Tax Credit".

While technically there is a provision that allows your student-dependent to claim a federal tuition credit, from a practical matter it seldom works out. A student, under age 24, is only eligible for the refundable portion of the American Opportunity Credit (AOTC) if he/she supports himself by working. She cannot be supporting herself on student loans & grants and 529 plans and parental support. It is usually best if the parent claims that credit.

If the student actually has a tax liability, there is a provision to allow him to claim a non-refundable tuition credit. But then the parent must forgo claiming the student as a dependent, and the $500 other dependent credit. The student must still indicate that he can be claimed as a dependent, on his return. This is worth up to $2500 (AOTC shifts to all non refundable)

jamminyamAuthor

So if my child is working, she can get the AOTC tax credit because she has a tax liability as long as I don't claim her on my taxes. Is this correct? If I don't claim her on my taxes how do I do this in Turbo Tax? Do I exclude her completely? Or how do I answer the questions to make it so I am not claiming her?