They do not have to pay more than 50% of your living expenses. 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, a residence test and a different support test. Only a QC qualifies a taxpayer for the Earned Income Credit.The support rule for a QC, is not that the taxpayer (your parents) paid more than half your support, it is only that you did not pay more than half your own support.A child of a taxpayer can still be a “Qualifying Child” (QC) dependent, regardless of his/her income, if: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 disabledHe did not provide more than 1/2 his own support. Scholarships are considered third party support and not as support provided by the student.He lived with the parent (including temporary absences such as away at school) for more than half the yearThe 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. Student loans, in the student's name, are considered support provided by the student, unless the parent co-signed. If the parent co-signed the loans, then the loan is parental support.

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lukekish21

Question

My parents want to claim me as a dependent for education expenses but did not pay more than 50% of my living expenses

Forum|Forum|6 years ago
May 1, 2020
1 reply
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Hal_Al

Employee

They do not have to pay more than 50% of your living expenses. 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, a residence test and a different support test. Only a QC qualifies a taxpayer for the Earned Income Credit.

The support rule for a QC, is not that the taxpayer (your parents) paid more than half your support, it is only that you did not pay more than half your own support.

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

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
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.
He lived with the parent (including temporary absences such as away at school) for more than half the year

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. Student loans, in the student's name, are considered support provided by the student, unless the parent co-signed. If the parent co-signed the loans, then the loan is parental support.

Hal_Al

Employee

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.