@Read2YourKids If your daughter is a full-time student the fact that she is in grad school has nothing to do with it. She is a student and she is under the age of 24. Nothing in the tax laws says the student has to be an undergraduate in order for a parent to claim the child. The rule is if she CAN be claimed as a dependent, she must say so on her own return if she is filing one. It is not a choice based on what education credits she can get if she does not file the return correctly. She does not have to live with you--living away at school is considered a temporary absence and you can still say she lived with you on your own return.
And...there is no such thing as being a dependent for part of the tax year. She was either a dependent or she was not a dependent. Read the criteria below and use the IRS tool to determine if she can be claimed. If you can claim her then YOU are the one who gets to enter the education credits on your own tax return. A dependent cannot claim education credits. If she is in grad school she (or you) cannot get the American Opportunity credit. But she might qualify you for the Tuition and Fees credit or Lifetime Learning credit.
IRS interview to help determine who can be claimed:
https://www.irs.gov/help/ita/who-can-i-claim-as-a-dependent
WHO CAN I CLAIM AS A DEPENDENT?
You can claim a child, relative, friend, fiance (etc.) as a dependent on your 2019 taxes as long as they meet the following requirements:
Qualifying child
• They are related to you.
• They cannot be claimed as a dependent by someone else.
• They are a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
• They are not filing a joint return with their spouse.
• They are under the age of 19 (or 24 for full-time students).
- No age limit for permanently and totally disabled children
• They live with you for more than half the year (exceptions apply).
Qualifying relative
• They don't have to be related to you (despite the name).
• They cannot be claimed as a dependent by someone else.
• They are a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
• They are not filing a joint return with their spouse.
• They lived with you the entire year.
• They made less than $4300 (not counting Social Security)
• You provided more than half of their financial support. More info
When you add someone as a dependent, we'll ask a series of questions to make sure you can claim them.
Related Information:
• Does a dependent have to live with me?
• What does "financially support another person" mean?
• Can I claim a newborn baby?
https://ttlc.intuit.com/questions/1901487-what-is-the-tuition-and-fees-deduction
https://ttlc.intuit.com/questions/3262984-who-is-eligible-for-the-lifetime-learning-credit
https://ttlc.intuit.com/questions/1901172-what-education-tax-credits-are-available
https://www.irs.gov/help/ita/am-i-eligible-to-claim-an-education-credit
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
