Usually we hear that question from the parents: our child graduated and got a job, but still lives at home, can we still claim him as a dependent. As others have said: if they CAN claim you, you cannot claim your own exemption ("claim yourself').
There
are two types of dependents, "Qualifying Children"(QC) and standard ("Qualifying
Relative" in IRS parlance even though they don't have to actually be
related). There is no income limit for a QC but there is an age limit.
Here's the standard answer for when the parents ask that question:
Graduation year
If he/she was a student (under 24) for at least
5 months and lived with you for more than half the year, and
did not provide more than 1/2 his own support for the whole year, you can still
claim him. Be sure he knows you're claiming him, so he doesn't claim himself.
He can only be claimed once. But, he can "file taxes" without
claiming his own exemption.
. The real question is who
should be claiming him in this "transition" year to adulthood. You
two have to agree on who is going to claim his exemption. Each should do their
taxes both ways and see which way the family comes out best. Even then,
you have to meet the rules. The rule is that a child of a taxpayer can
still be a “Qualifying Child” dependent, regardless of income, if:
1. he is a full time student under 24 for at
least 5 calendar months of the year (graduating in May usually means you meet
the 5 month rule)
2. did not provide more than 1/2 his own
support
3. lived with the parent (or was away at
school) for more than half the year
So, it usually hinges on "Did he
provide more than 1/2 his own support for the tax year".
The support value of the home you provided is
the fair market rental value of the home plus utilities & other expenses
divided by the number of occupants. IRS Publication 501 on page 20 has a
worksheet that can be used to help with the support calculation. See: http://www.irs.gov/pub/irs-pdf/p501.pdf
If he has already filed one
way, he can file an amended return, going the other way
