college tuition waiver

[hardcasenoir373]

Our daughter always qualified for a tuition waiver at the college where I am employed full time.  On the 2019 Tax Return I could not list her as a dependent child because she earned just a little too much according to the software, thus voiding the tuition waiver.  She still is really a student who lives at home and we cover her expenses.   Is there any way to amend a 2019 return in order to claim her on paper as a dependent?  Maybe lower her income by an IRA? 

[VolvoGirl]

You might have answered a question wrong.  If she was under 24 on Dec 31 you can claim her no matter how much she made if she was a full time student.   Go back through My Info and click Edit by her name.

[DoninGA]

If she was under the age of 24 in 2019, then you could have claimed her as a dependent on your tax return, regardless of her income and if she met the other requirements under the Qualifying Child rules. 

If she was age 24 or older in 2019 and has gross income of $4,200 or more then no one can claim her as a dependent under the Qualifying Relative rules.

If you can claim her as a dependent, then amend your 2019 tax return.  

See this TurboTax support FAQ for printing a tax return for mailing - https://ttlc.intuit.com/community/printing/help/how-do-i-print-and-mail-my-return-in-turbotax-online...

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]

There are two types of dependents, "Qualifying Children"(QC) and standard ("Qualifying Relative" in IRS parlance even though they don't have to actually be related). There is no income limit for a QC but there is an age limit, student status, a relationship test and residence test. Only a QC qualifies a taxpayer for the Earned Income Credit. They are interrelated but the rules are different for each.

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.

[Hal_Al]

"thus voiding the tuition waiver"

It's not clear what that means.  The rules for qualifying for a tuition waiver are set by the school/employer, not the IRS. 

"Is there any way to amend a 2019 return in order to claim her on paper as a dependent?"

Yes. If you already filed the other way, you may file an amended return to claim your Qualifying Child dependent. If she did not check the box on her return saying that she could be claimed as a dependent, she will also have to file an amended return just to check that box.  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. 

"Maybe lower her income by an IRA? "

No.  Changing her Adjusted Gross Income (AGI) does not change her gross income for the dependent income test. But as the other replies stated, income is NOT an issue for a dependent that meets the qualifying child rules. 

*The 2019/2020 stimulus check is a separate issue.