Question

claiming grad student child as dependent

Forum|Forum|3 years ago
March 7, 2023
1 reply
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Full time grad student child with no earned income but unearned income is above the limit and has to file a return. He also has a capital loss carryover to preserve until has income so that also necessitates filing a return. Because I always claim him as a dependent on my return he gets the standard deduction of 1150 not 12950. In years where his taxable income is greater than the 1150 standard deduction I have to reduce his capital loss carryover by that amount even if he owes no taxes because it is taxable income but he is not getting any benefit from the carryover because he wouldn't owe taxes but it is being decreased.

If he claims himself this year, he gets the 12950 standard deduction and has no taxable income and do not have to reduce the capital loss carryover. There is no federal tax benefit to my claiming him as a dependent and for NYS return Iget a small benefit for a personal exemption.

Is there any reason not to have him claim himself as a dependent? I owe a little more in taxes but his capital loss carryover does not get reduced and that is a greater financial benefit. If I do not claim him, do I lose the right to claim him next year (albeit under qualifying dependent rules not qualifying child due to his age)? Is there anything I am waiving?

C

Cynthiad66

You have done a great job analyzing your tax situation for tax year 2022. It seems that the benefits are greater for him and outweighs the increase in your taxes as a result of not claiming him.

If you skip a year claiming a dependent does not mean that you can not claim him in future years. He will then need to meet the requirements of a qualifying dependent.

I agree that it is better for you not to claim him to avoid losing the capital loss carryover. the tax benefits for him is greater that way.

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