Q. Which status does my child meet if the following is true - dependent (my husband and I would claim him as a dependent) or independent (would file as single, and I would not claim him as a qualifying child)?
Through his work (his earned income), he pays for over half of his living expenses.
If it's true that he pays for more than half his support, then you would not be able to claim him as a dependent. But that's highly unlikely and easily adjusted, so that you can claim him.
What is it that you expect to gain by having him claim independent.
With the tax law change, effective 2018, most students/dependents will get the same refund whether they claim themselves or not. The personal exemption has been eliminated and the standard deduction increased. He is not eligible for the Earned Income Credit, based on age.
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
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.
