A full-time unmarried student, under age 24, whether a dependent or not, is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working. But GI Bill money does count for support for paying for education. Even if you can't claim him (because of his GI bill income) and he claims himself, he is not going to qualify for the non-refundable education credits because he does not have enough earned income.
Whether it's a child, a friend or a relative you support, the term 'support' is generally defined as what you spend on a person to provide the basic necessities of life. While the specifics may be debatable in certain circles, here's what the IRS considers typical for the purposes of a tax return.
Support includes:
- Food
- Lodging (even if your mortgage is paid off)
- Clothing
- Education (including the GI bill)
- Medical and dental care (including insurance and supplementary Medicare premiums)
- Recreation
- Transportation and similar necessities
Support does not include:
- Life insurance premiums
- Funeral expenses
- Federal, state, or local income taxes or Social Security and Medicare taxes paid on a person's own income
- Scholarship grants
- Income made by a disabled person in a sheltered workshop
Generally, if this person provides more than half of his or her own support, you cannot claim him or her as a dependent.
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