Turbotax tells me my child doesn't qualify as a dependent because she earned more than $4300.
It has always depended on their age. If they were under 24 on December 31 you can claim a full time student no matter how much they made. If they turned 24 during the year you can only claim them if they made less than 4,300 in 2021.
See IRS Publication 501 starting on page 11 bottom Dependents
https://www.irs.gov/pub/irs-pdf/p501.pdf
Who can I claim as a dependent?
It has always depended on their age. If they were under 24 on December 31 you can claim a full time student no matter how much they made. If they turned 24 during the year you can only claim them if they made less than 4,300 in 2021.
See IRS Publication 501 starting on page 11 bottom Dependents
https://www.irs.gov/pub/irs-pdf/p501.pdf
Who can I claim as a dependent?
Q. Is there a $4300 income limit for full-time college students to be dependents ?
A. No. There never has been (since 2004). Being a full time student, under 24 (plus other rules, see below) means there is no income test to be a dependent.
Q. Previously, it didn't matter as long as I was providing 1/2 of their support?
A. No, that's not true either.
There are two types of dependents, "Qualifying Children"(QC) and standard ("Qualifying Relative" in IRS parlance). 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:
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 him self.
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.
See full dependent rules at: https://turbotax.intuit.com/tax-tools/tax-tips/Family/Rules-for-Claiming-a-Dependent-on-Your-Tax-Return/INF12139.html