Dependent/ Student/ Internship

[catkik]

My daughter is a full time student and participated in a 2 semester coop in 2025. She only took classes in the Summer. The school still considered her a full time student. She made $38000 and will need to file taxes. She lived at home and we technically provided her support. She only paid some of her minor expenses.  After looking over dependent requires, we believe she still is considered our dependent.

Is there a tax advantage to not claim her as a dependent? 

[CatinaT1]

Maybe, it depends on a couple things. Can you tell me how old your daughter was on Dec 31, 2025?  She only has to attend school for part of at least 5 months during the year so if she had classes from May 30-Sept 1, that counts as 5 months and makes her a full-time student.  Did she get a 1098-T from the school and does she have tuition paid in box 1 that is more than any scholarships or grants listed in box 5? And finally, is your income on your return over $180,000?

Once I have that information, I can advise you better.

[catkik]

She did get 1098-T. 

Box 1 is $7100 and box 5 is $5300, but $7100 includes room and board, so technically, she has some taxable scholarships - about $2300

no, our income is not over 180000

[catkik]

She is 21 by the way

[RobertB4444]

As long as she is under 24 then yes, you can claim her as your dependent.  You will be able to claim the tuition credit for her as well as a $500 deduction for her.

The advantage to not claiming her is all for her.  As long as you are claiming her she can't get as much financial aid with college and she's not entitled to grants she might otherwise be entitled to because your income is added to hers to determine what she qualifies for.  She is also paying taxes on $38,000 without being able to take a full deduction for herself.