@avjunior wrote:
@Opus 17 said "Consider carefully if your child qualifies as a dependent."
This is something I would have missed. My child (20 years old at end of 2023) has an AGI on their 1040 of almost $21k from working. Add to that college loans in their name.
It's not trivial to determine some of the support we provided such as letting the child use our credit card for shopping, being on our health plans (which are priced for 'family'), room+board for living here two months in the summer, etc.
Essentially, all the shared expenses are pro-rated. If you have a family of 4, you would count 1/4 your household expense as part of her support (rent or mortgage, utilities, food), probably 1/4 the family health insurance. You would need to count everything you pay for on the child's behalf (shopping, travel, entertainment, clothes). Include any tuition or room and board you pay. On the child's side, count anything they pay for, plus the loans in their name. (But as mentioned, if their funds are going into savings, that is not going into providing for their support needs.)
It's hard for the kid to get over the hump of providing more than half their own support, when you consider the value of the housing you provide over summers, income differences, etc. But it is possible, depending on the family, the tuition, and the amount of loans. It might not add up in your case but it should at least be checked.
