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June 6, 2019
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My 19 year old daughter made $6k so it looks like I can't claim her as a dependent. So does that mean I can't claim any of the money I paid for her tuition (1098-T)?

  • June 6, 2019
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Best answer by DoninGA

If she was a full time student in 2016, then her income is not relevant in claiming her as your dependent.

Go back and review your answers in the Personal Info section for dependents.  Make sure that you indicated that the dependent lived in your home for the whole year.  A student away from home temporarily for education is considered living in the home.  Make sure that you indicated that the dependent did NOT provide over one-half of their own support.  Make sure that you indicated the dependent was a Full Time Student.  Make sure that you indicated that there was no one else in the household supporting the dependent.  If you answered these questions correctly the program does not even ask about the dependent's income.

After review, if the dependent is still not being listed as your dependent then delete them from the dependent section and re-enter.

Claiming the student as a dependent allows you to claim their personal exemption.  It also allows you to claim any education expenses and any education credits on your tax return for the student.  The Form 1098-T can only be entered on your tax return when claiming the student as your dependent.

Additionally, if her earned income is being reported on a W-2 and the amount is $6,300 or more and you are claiming her as a dependent, then she must file a tax return.  When she files a tax return she Must indicate on her tax return that she can be claimed as a dependent on someone else's tax return.

These are the Qualifying Child rules for dependency -

To be a Qualifying Child -

1. The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them.

2. The child must be (a) under age 19 at the end of the year, (b) under age 24 at the end of the year and a full-time student or (c) any age and permanently and totally disabled.

3. The child must have lived with you for more than half of the year. Temporary absences while away at college are considered living with you.

4. The child must not have provided more than half of his or her own support for the year.

5. If the child meets the rules to be a qualifying child of more than one person, you must be the person entitled to claim the child as a qualifying child. 

6. The child must be a U.S. citizen or U.S., Canada or Mexico resident for some portion of the year.

7. The child must be younger than you unless disabled.

1 reply

DoninGA
DoninGAAnswer
Employee
June 6, 2019

If she was a full time student in 2016, then her income is not relevant in claiming her as your dependent.

Go back and review your answers in the Personal Info section for dependents.  Make sure that you indicated that the dependent lived in your home for the whole year.  A student away from home temporarily for education is considered living in the home.  Make sure that you indicated that the dependent did NOT provide over one-half of their own support.  Make sure that you indicated the dependent was a Full Time Student.  Make sure that you indicated that there was no one else in the household supporting the dependent.  If you answered these questions correctly the program does not even ask about the dependent's income.

After review, if the dependent is still not being listed as your dependent then delete them from the dependent section and re-enter.

Claiming the student as a dependent allows you to claim their personal exemption.  It also allows you to claim any education expenses and any education credits on your tax return for the student.  The Form 1098-T can only be entered on your tax return when claiming the student as your dependent.

Additionally, if her earned income is being reported on a W-2 and the amount is $6,300 or more and you are claiming her as a dependent, then she must file a tax return.  When she files a tax return she Must indicate on her tax return that she can be claimed as a dependent on someone else's tax return.

These are the Qualifying Child rules for dependency -

To be a Qualifying Child -

1. The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them.

2. The child must be (a) under age 19 at the end of the year, (b) under age 24 at the end of the year and a full-time student or (c) any age and permanently and totally disabled.

3. The child must have lived with you for more than half of the year. Temporary absences while away at college are considered living with you.

4. The child must not have provided more than half of his or her own support for the year.

5. If the child meets the rules to be a qualifying child of more than one person, you must be the person entitled to claim the child as a qualifying child. 

6. The child must be a U.S. citizen or U.S., Canada or Mexico resident for some portion of the year.

7. The child must be younger than you unless disabled.

April 8, 2020

I understand that income is irrelevant to the necessary qualifications to be claimed as a dependent, however, my father has been using me as a dependent when he hasn't provided me with financial assistance in two years. This includes money for miscellaneous spending, grocery shopping costs, tuition and other school-related costs, phone bills, medical bills, etc. In fact, I've been paying my own medical bills since I was 17. In September, 2019, I turned 21 and generated a gross income of $7,070 while still being considered a full time student. Does this not warrant my status as an independent? 

If the answer is no, will I be able to file as an independent once I graduate? And if so, what does this process look like? (I will be graduating next month in May, 2020). 

 

Hal_Al
Employee
April 8, 2020

@KMARIN64  - Yes, the answer is no.  The support test, for a full time student ("Qualifying child" dependent) is not how much support the parent provided, it's how much the student provided*.

 

Yes, once you graduate, you (most likely) will be able to claim yourself.  But even that can go two ways**.

 

With the tax law change, effective 2018, most students will get the same refund whether they claim themselves or not. The personal exemption has been eliminated and the standard deduction increased. Most (almost all) students are no eligible for the refundable tuition credit***.

 

Under the CARES Act, if you are claimed as a dependent on someone else’s return you cannot receive a stimulus check.  If you were claimed as a dependent for 2019, but not 2020 you will most likely not receive a stimulus check.  You may however, be able to get a tax credit for it when you file your 2020 taxes in 2021. 

"In essence, the stimulus check acts as an advance of your 2020 income tax refund. This means when you prepare your 2020 income tax return, there will be a line to include the section 6428 credit. The credit on your 2020 return is subtracted by any amount received as a stimulus check in 2020. If the amount you received as a stimulus check is less than the credit you are due, the difference will be included as part of your 2020 refund. If you have been overpaid by receiving the stimulus check, however, you will not be required to return any excess amount".

 

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*There are two types of dependents, "Qualifying Children"(QC) and standard ("Qualifying Relative" in IRS parlance even though they don't have to actually be related). There is no income limit for a QC but there is an age limit, student status, a relationship test and residence test. Only a QC qualifies a taxpayer for the Earned Income Credit. 

A child of a taxpayer can still be a “Qualifying Child” (QC) dependent, regardless of his/her income, if:

  1. He is under age 19, or under 24 if a full time student for at least 5 months of the year, or is totally & permanently disabled
  2. He did not provide more than 1/2 his own support. Scholarships are considered third party support and not as support provided by the student.
  3. He lived with the parent (including temporary absences such as away at school) for more than half the year

So, it doesn't matter how much he earned. What matters is how much he spent on support. Money he put into savings does not count as support he spent on him self.

The support value of the home, provided by the parent, is the fair market rental value of the home plus utilities & other expenses divided by the number of occupants.

 

Furthermore, there is a rule that says IF somebody else CAN claim him as a dependent, he is not allowed to claim himself. If he has sufficient income (usually more than $12,200), he can & should still file taxes. In TurboTax, he indicates that somebody else can claim him as a dependent, at the personal information section.  TT will check that box on form 1040.

Even if he had less, he is allowed to file if he needs to get back income tax withholding. He cannot get back social security or Medicare tax withholding.

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**Graduation year  (written as if  the parent's asked the question)

If he/she was a student (under 24) for at least 5 months and lived with you for more than half the year, and did not provide more than 1/2 his own support for the whole year, you can still claim him. Be sure he knows you're claiming him, so he doesn't claim himself. He can only be claimed once. But, he can "file taxes" without claiming his own exemption.

The real question is who should be claiming him in this "transition" year to adulthood. You two have to agree on who is going to claim his exemption. Each should do their taxes both ways and see which way the family comes out best.  Even then, you have to meet the rules. The rule is that a child of a taxpayer can still be a “Qualifying Child” dependent, regardless of  his income, if:

  1. he is a full time student under 24 for at least 5 calendar months of the year (graduating in May usually means you meet the 5 month rule)
  2. he did not provide more than 1/2 his own support  (scholarships are considered 3rd party support and not support provided by the student). 
  3. lived with the parent (including time away at school) for more than half the year

 

So, it usually hinges on  "Did he provide more than 1/2 his own support in 2019.

The support value of the home you provided is the fair market rental value of the home plus utilities & other expenses divided by the number of occupants. IRS Publication 501 on page 20 has a worksheet that can be used to help with the support calculation. See: http://www.irs.gov/pub/irs-pdf/p501.pdf

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***There's a new urban myth among college students that says they can get a $1000 from the government just for filing a tax form. For most of them, they simply aren't eligible. A full time unmarried student, under age 24, is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working. You cannot be supporting yourself on parental support, 529 plans or student loans & grants. You usually must have actually paid tuition, not had it paid by scholarships & grants.  It is usually best if the parent claims that credit. 

You cannot claim a credit if you are, or can be, claimed as a dependent by someone else.