My 20 y/o daughter is a full-time student and made over $4700. Can I still claim her as a dependent? She lives at school most of the year.

[MinhT1]

Yes, if she didn't provide more than half of her own support.

See this TurboTax document.

[mike66usa]

She lives at school 9-10 months out of the year.  Which seems to eliminate one of the 5 tests.  The $4700 limit seems to be another obstacle that eliminates one of the 4 tests in the article.  That $4700 limit in this day and age is ridiculous.  People make $20 working at McDonalds.  That translates into working like 4-5 hours a week.

[DoninGA]

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@mike66usa wrote:

She lives at school 9-10 months out of the year.  Which seems to eliminate one of the 5 tests.  The $4700 limit seems to be another obstacle that eliminates one of the 4 tests in the article.  That $4700 limit in this day and age is ridiculous.  People make $20 working at McDonalds.  That translates into working like 4-5 hours a week.

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Since she is under the age of 24 and a full-time student she can be claimed as a dependent under the Qualifying Child rules.  Under the rules her income is not a factor.  Nor is her being away from home a factor since she is only temporarily away from home for education.  You should have indicated that she lived in your home for the entire year.  The only factor under rules that could apply would be if she provides over one-half of her own support.

To be a Qualifying Child -

1. The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them.
2. The child must be (a) under age 19 at the end of the year, (b) under age 24 at the end of the year and a full-time student or (c) any age and permanently and totally disabled.
3. The child must have lived with you for more than half of the year. Temporary absences while away at college are considered living with you.
4. The child must not have provided more than half of his or her own support for the year.
5. If the child meets the rules to be a qualifying child of more than one person, you must be the person entitled to claim the child as a qualifying child.
6. The child must be a U.S. citizen or U.S., Canada or Mexico resident for some portion of the year.
7. The child must be younger than you unless disabled.

[Hal_Al]

For tax purposes, she still lives with you. Her 9-10 months away from home, to attend school, is only a temporality absence. 

The support value of the home, provided by the parent, is the fair market rental value of the home plus utilities & other expenses, for the whole year, divided by the number of occupants. 

She is your Qualifying Child dependent.

[mike66usa]

Even if she started using her school address as her address?  Things like her bank documents still come to my home and not to her school address.

[Hal_Al]

Q. Even if she started using her school address as her address? 

A. Yes. That's very common and doesn't change the answer.

It sounds like you might be trying to shift the education credit to her. That doesn't work.

While technically there is a provision that allows your student-dependent to claim a federal tuition credit, from a practical matter it seldom works out.  A full time student, under age 24, even if not a dependent, is only eligible for the refundable portion of the American Opportunity Credit (AOTC) if he/she supports himself by working. She cannot be supporting herself on student loans & grants and 529 plans and parental support.  It is usually best if the parent claims that credit.  

If the student actually has a tax liability, there is a provision to allow him to claim a non-refundable tuition credit. But then the parent must forgo claiming the student as a dependent, and the $500 other dependent credit.  The student must still indicate that he can be claimed as a dependent, on his return. This is worth up to $2500 (AOTC shifts to all non refundable)

[mike66usa]

The problem I am up against is that she claimed herself on her taxes.  So when I did mine they got rejected because I was trying to claim her and she already stated that no one can claim her.   So now I would need to amend her return and mine both federal and state.  The difference in my taxes would be about $3600.  So it seems like if I can in fact still claim her it would be worth jumping through the hoops as $3600 is no small amount.

[Hal_Al]

Yep, you need to jump through the hoops. 

With the tax law change, effective 2018, most students will get the same refund whether they claim themselves or not. The personal exemption has been eliminated and the standard deduction increased. However, you only qualify for an education credit or deduction, if you are not a dependent.

If she claimed the education credit, it was almost certainly, erroneously. 

[mike66usa]

Thank you for the advice.  She does whatever the boy friend tells her to do when she should have called me as he has no tax experience and thinks he knows things.  He has no knowledge of my taxes and how they inter withing our family.  Now I have a louse situation that is likely beyond my ability to fix it personally.  Guess I have to make an appointment with a tax expert and see what they will charge to fix what would have been free on the front end.  Anyone need an extra kid?

[VolvoGirl]

If your return rejected you do not amend it .  You will have to print and mail your return this year even if she amends her return.  You don't have to wait for the IRS to process her amended return.   Once a ssn has been entered into the IRS you can't efile it again.  

How to print and mail
https://ttlc.intuit.com/community/printing/help/how-do-i-print-and-mail-my-return-in-turbotax-online...

Be sure to attach copies of your W2s and any 1099s that have withholding on them.  You have to mail federal and state in separate envelopes because they go to different places.  Get a tracking number from the post office when you mail them for proof of filing.

[mike66usa]

Thank You!  Well, I resubmitted it with her removed and it went through.  I thought about it later and probably should have filed for an extension instead and sorted it out.  Now I have to do the amendment on both or more likely go to a professional.  Drives me nuts because all she had to do was call me and ask before she believed what her boyfriend was telling her to do.