Our 23 year old child full time student used money from gifts from us (parents) to pay for clothing, other items, and a car. Did she provide this support or did we?

Forum|Forum|7 years ago
June 5, 2019
1 reply
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This is a dependent support test question. Our daughter is 23 years old. Graduated college May 2018. Was full time student. Had part time job during college and full time job starting in June 2018. She lived at home. She meets all dependent tests but I am having trouble confirming whether or not she provided more than 50% of her own support. If she did not then she is dependent and we would get $500 child credit but do not qualify to claim an education credits. If she did provide more than 50% of her own support then her tax refund would increase by $1,000 due to an education credit. I did both of our taxes both ways in Turbo Tax to figure this out. Just want the right answer the I can defend if need be.

TurboTax Deluxe Mac

Best answer by Vanessa11_2

If you are giving her the money even if it is as a gift, you are providing that money/support. So if your gifts provided more than half of her support, you can claim her, but you don't have to.

In order for her to claim the education credits, she can't be claimed. This years instructions for form 8863 (education credits) just say "You cannot be claimed as a dependent" It does not say you cannot be eligible to be claimed. So if you do not claim her, she can take the credit.

https://www.irs.gov/pub/irs-pdf/i8863.pdf

Vanessa11_2Answer

Level 13

If you are giving her the money even if it is as a gift, you are providing that money/support. So if your gifts provided more than half of her support, you can claim her, but you don't have to.

https://www.irs.gov/pub/irs-pdf/i8863.pdf

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stitch0991Author

Level 2

thank you. How does a private student loan that she took out but I cosigned figure into the support question. Support provided by her, or support provided by me?