Our daughter is in grad school and uses student loans for tuition & apartment. We supplement food, gas, allowance. Should we still claim her as a dependent?

[gtbartel]

Or would her tax situation improve if she is non-dependent? She earned wages in 2024 and has a 1098-T but gains little advantage as a dependent when filing.

[Bsch4477]

If she provides more than half of her support you can’t claim her. 

[gtbartel]

Yes, I have heard that before but is paying for tuition, and an apartment with utilities using a student loan self supporting? The apartment is only for school, and afterwards she will likely be home with us. We don’t mind her filing her tax and not being claimed on our tax but the line seems blurry.

[Bsch4477 · Accepted solution]

The loan money used for her support counts as her support. Use this worksheet to determine the level of her own support. 

https://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf

But if she is age 24 or older and earned more than $5050, you can’t claim her anyway. 

[gtbartel]

Thank you for the reference sheet. She is 22 and for half the year she was home with us before school started. During that time is when she worked. Your help is appreciated.