College Grad

[gborden]

My 21 year old graduated college May '24, only taking 8 credit hours (part time) and earned $11,500 last year but still lives full time with me.

Am I correct that they are no longer my dependent and need to file for themselves this year?

And then would they file for the tuition tax credit for tuition paid?

[Vanessa A]

Correct.  Since he is not a full time student, and earned more than $5,050 he is no longer your dependent.

His income is less than the $14,600 filing threshold for filing a single person.  If he has no tax liability, he would likely not benefit from a tuition credit as he would only be eligible for the non-refundable portion of the credit if you are still providing most of his support. 

 

You don't qualify for a refundable American opportunity credit
if 1 (a, b, or c), 2, and 3 below apply to you.
1. You were:
a. Under age 18 at the end of 2024, or
b. Age 18 at the end of 2024 and your earned income
(defined later) was less than one-half of your support
(defined later), or
c. Over age 18 and under age 24 at the end of 2024 and a
full-time student (defined later) and your earned income
(defined later) was less than one-half of your support
(defined later).
2. At least one of your parents was alive at the end of 2024.
3. You're not filing a joint return for 2024