Can I claim my child as dependent or can she file as an independent?

[user17706704064]

Hello.

My child is 23 years old, full time graduate student. She is away for school and will return home for the break. Since she is a PhD student, the school covers her tuition, and she receives the stipend/grant. In 2025, she had the earned income (W2) of approx. $12K and stipend from school of $37K. My support for her was less than $5K. And her earned income does not cover 50% of support for her.

In her situation, can she claim herself as independent when filing her income tax? Or am I allowed to claim her as a dependent child for the last time, even though my support was minimal?  I am a single mom, so if I can claim her as my dependent, then I can file as the head of household, and it will be beneficial. Is this legal to claim her as my dependent with very minimal support?  Or can she file as an independent? If she can file as an independent, then will she be able to avoid the kiddie tax?

I have taken care of tax filing for both of us, using turbo tax in the past and I would like to do it correctly for 2025. I would appreciate it very much if someone could answer my question.

Thank you.

[ReneV4 · Accepted solution]

Yes. You may still claim your child as your dependent.

She is still a qualifying child, according to the IRS Qualifying Child Rules.

Additionally, her earned income does not cover more than half of her support. 

When filing her own return for her W-2, she should indicate that someone else can claim her on their return (you).

[Hal_Al · Accepted solution]

Q. Am I allowed to claim her as a dependent child for the last time, even though my support was minimal? 

A. Yes, probably.  You may have to run the support calculation.

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.

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.

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, including most stipends, are excluded from the support calculation
3. He lived with the parent (including temporary absences such as away at school) for more than half the year. The time at school is counted as living with you

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 himself.

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

The IRS has a worksheet that can be used to help with the support calculation. See: http://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf

[user17706704064]

Thank you so much for your response.  This helps a lot.  Have a wonderful day!