Should I claim my adult daughter (age 24) as a dependent this year if she will be going off to medical school for the 2021/2022 school year?

[thenwood1]

She has been unable to work the last couple of years and I have claimed her as a dependent in prior years. Trying to increase her ability for financial aid and in-state tuition for future years.

[Bsch4477]

If she was age 24 in 2020 and earned less than $4,300 and you provided more than half of her support you can claim her as a dependent. 

[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 and student status test, a relationship test and a residence test. Only a QC qualifies a taxpayer for the Earned Income Credit. The Other dependent (qualifying relative) credit is worth (up to) $500 per dependent and is non-refundable.  That is, it can only be used to reduce an actual tax liability.

Since you daughter is 24, she can no longer be a QC.  So, now there is an income test. A person can still be a Qualifying relative dependent, if not a Qualifying Child, if he meets the 6 tests for claiming a dependent:

1. Closely Related OR live with the taxpayer ALL year
2. His/her gross taxable income for the year must be less than $4300 (2020).
3. The taxpayer must have provided more than 1/2 his support

In either case:

4. He must be a US citizen or resident of the US, Canada or Mexico
5. He must not file a joint return with his spouse or be claiming a dependent of his own
6. He must not be the qualifying child of another taxpayer