At 28, she is too old to be a Qualifying Child. But, a person can still be an
other dependent (Qualifying relative in IRS parlance, even though they do not
have to actually be related), if he meets the 6
tests for claiming a dependent:
1. Closely Related OR live
with you ALL year
2. His/her gross taxable income for the year must be less than $4,000 (2015)
3. You must have provided
more than 1/2 his support
4. He must be a US citizen or resident of the US, Canada
or Mexico
5. He must not file a joint
return with his spouse or be claiming a dependent of his own
6. He must not be the
qualifying child of another taxpayer
Money paid by loans for tuition and medical is support, not provided by you. Note that an adult child is closely related so there is no requirement that
she live with you at any time, during the year. But if you provided a home it
helps your support case.. If no one person
(or married couple) provides 50% of the support (for example grandparents are
also sending support), then a "multiple support agreement” (IRS Form 2120)
can be used, to allow you to claim the dependent.
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 The support
value of a home is the fair market rental value, divided by the number of
occupants.
