Daughter is 22 and lives away at school year round, and I do not financially support her in anyway. My ex husband (not her real or adoptive father, so no relation at all) pays for college, rent, car, phone, etc. According to the “four tests” for a dependent, I can still claim her as a dependent. Am I correct in thinking that if I claim her as a dependent, then I have to include her income in the household income calculation? She more than doubled her previous income last year and made $16,600. If I include that then I am basically disqualified for any Premium Tax Credit and will have to repay the $2600 I used in 2019. I earned $34,000 I have one other child I can claim as dependent and another who is claimed by his father, but he is a qualifying child for me in regards to the Earned Income Credit.
The problem is occurring this year because of her increase in income. The premium tax credit was based off a household of three, so if I don’t claim her as a dependent won’t the amount I qualified for drop? And I will then owe the difference.
Do I have to claim her as a dependent? I would be better off not receiving any credit for her then if I do claim her and have to report her income.
If I don’t claim her as a dependent, does she still count as a qualifying child?
I’m not sure what to do, as the amount of money available in my household didn’t change, but her income did. I simply followed the instructions regarding how many people to include in my household, but only now am I seeing that her income is actually hurting me.
