Do Student Loans count as Support?

[madmaxtax]

My daughter is 26 and in Medical School. She took out $50,000 in students loans in 2018 mainly to pay for tuition and some living expenses. The loans are in her name. I am not a co-signer.

She meets all the other qualifying relative tests. 

Since the loans are in her name, do they count as her providing her own support?

I provided a lot of financial support for her but not over $50,000.

Can I claim her as a qualifying relative? 

[DanielV01 · Accepted solution]

The loans do factor in to her support, yes.  You state why:  they are in her name, so she is responsible for repaying them.  In essence, even though she did not earn enough money, this money is "hers".  

However, this does not necessarily mean that you didn't provide at least half of the support.  Rather, use the Worksheet link I attach to determine if you provided at least half of her support.  If you did, then you may claim her as a qualifying relative if her taxable income was below the threshold amount of $4150 of taxable income:  Worksheet for Determining Support - IRS.gov

[madmaxtax]

Thanks. That's what I thought. I was having trouble finding it in the tax publications. Yea, I didn't provide more than $50,000, but thanks for the worksheet.

[shelbydewulf1108]

Thank you, in a divorce situation things are more muddled.  I appreciate the form.