If the children are in full time university and under the age of 24 they can still be claimed as dependents. If one of your homes is their main home, and they are away temporarily for school but return there on school holidays and during the summer, then they are considered to be living with that parent. Once they establish a living arrangement of their own and are no longer returning to either of your homes, they are no longer a qualifying child. However, they may still be a qualifying relative dependent, which is less of a tax benefit, but still worthwhile, if you are still supporting them. You will need to carefully consider their income and calculate support. You must have provided more than 50% of your student's financial support, which includes expenditures for:
- Food
- Clothing
- Shelter
- Transportation
- Education
- Medical and dental care
There is no distinction between pension income and wages as far as providing support to qualify as a dependent. (It would not qualify for the earned income credit though) So again, it may come down to who is providing more than half of their support.
