22 year old child graduated college May 2023 and earned more than $5,000 in 2023

[first_beach]

Some say I can claim him as a dependent and it doesn't matter how much he made in 2023. Others say if he made more than $4,700 I can not claim him as a dependent. Which is correct?

[DoninGA · Accepted solution]

If he was a full time student in 2023 and under the age of 24 you can claim him as a dependent under the Qualifying Child rules.  Under the rules his income is not a factor.  What is a factor if he provided over one-half of his own support.

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.

[Bsch4477]

Since the child was a full time student you can claim the dependency. It doesn’t matter how much the child earned as long as you provided more than half the support.  The $4,700 restriction would have applied if the child were not a full time student. 

[Hal_Al]

Q. Some say I can claim him as a dependent and it doesn't matter how much he made in 2023. Others say if he made more than $4,700 I can not claim him as a dependent. Which is correct?

A. Either, depending on more detail.

There are two types of dependents, "Qualifying Children"(QC) and Other ("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. They are interrelated but the rules are different for each.

The support test is different for each type. The support test, for a QC, is only that the child didn't provide more than half his own support. The support test for a Qualifying Relative is that the taxpayer provided more than half the relative's support.

Since he graduated in May, he meets the five month rule and is considered a full time student for 2023.  So, if he also meets the  residency and support tests, he can be your QC for 2023.  If he does not meet those tests, we then look to see if he meets the qualifying relative rules, which has the $4700 income test. 

[first_beach]

Thank you to everyone who has responded.  Turbo tax keeps automatically rejecting my QC as a dependent. Looks like the issue is he started his job and moved into his apartment in June. Looks like if it had been July or August I would take him as a dependent.  Considering we helped with getting the apartment and he was full time student as of May 2023, seems the actual amount of support we provided isn't as important as the month he started his full time job.  I believe it will help him by me not claiming him, so I'm ok with it; just want to make sure I'm not breaking the law.  Again, thank you for the responses. 

[Bsch4477]

You are correct. Since he didn’t live with you for more than half of the year you can’t claim him.