Turbo tax says my adult son is not my dependent even though I paid for more than 50% of his living expenses

[Hal_Al · Accepted solution]

Your question only states that you meet the support rule.  There are other qualifiers.  Be sure you meet them all.  If so. then you have answered something wrong, in the interview. Carefully, go thru the interview again. If that doesn't work, delete the dependent and re-enter. 

There are two types of dependents, "Qualifying Children"(QC) and Other ("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.

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:

1. He is under age 19, or under 24 if a full time student for at least 5 months of the year, or is totally & permanently disabled
2. He did not provide more than 1/2 his own support. Scholarships are excluded from the support calculation
3. He lived with the parent (including temporary absences such as away at school) for more than half the year

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 himself.

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.

The IRS has a worksheet that can be used to help with the support calculation. See: http://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf

See full dependent rules at: https://turbotax.intuit.com/tax-tools/tax-tips/Family/Rules-for-Claiming-a-Dependent-on-Your-Tax-Ret...

A person can still be a Qualifying relative dependent, if not a Qualifying Child (but then it does matter how much income he has) 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 $5200 (2025) ($5050 for 2024).
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

He must have a US social security number or tax identification number (TIN)

[joester1952]

Thanks, Hal!  I was pretty sure I knew all the guidelines, and I tried three times to check off all of the answers correctly.  I finally gave up and posed my question to the community. 

I went back in, entered everything for the fourth time.... and this time it worked!  I got the $500 child tax credit on my 1040.  Then I returned to the community and found your answer.

Now I have a new question:  How can I get that $500 credit for my daughter-in-law?  We were their sole source of support for eleven months.  I answered the questions the same way for her, but Turbo Tax says she is not our dependent.

[joester1952]

Hal:  FYI, Turbo tax gives me the credit I claim she is my "niece", but not if I describe her as "other"

[joester1952]

Maybe I should claim her as my "daughter"... after all, she is my daughter-in-law.

[Hal_Al]

Q. Should I claim her as my "daughter"... after all, she is my daughter-in-law?

A.  Yes.  Since they don't give you an in-law choice, select the relationship created by marriage, daughter.  

Nieces, nephews  and in-laws are on the list or relatives that do not have to live with you, all year, to be claimed as a dependent.