Child was 23 at end of 2019 and full time student.
Child was a dependent on parent 2018 return.
Child (or parent for this child) has never received American Opportunity or Lifetime Learning college tax credits.
Most of college expenses were submitted for a distribution from 529 account. Owner is a parent, beneficiary is a child on the 1099Q.
Child received a modest scholarship from the school of $3500 against approx $22000 tuition. The distribution from the 529 was for expenses after the scholarship was use for tuition.
Child had no earned income in 2019. Only a very small amount of interest from checking accounts. (less than $75)
Due to age, child will not be eligible as dependent for 2020 taxes.
My questions are:
Should I NOT claim the child as a dependent for 2019, since this may make the child eligible for the college tax credits? I am aware that I would be giving up a $500 child tax credit, but assume she may be eligible for a larger credit.
What effect will claiming the child as a dependent in 2019 have on the child's eligibility for the Coronovirus Stimulus check? If it is based on 2018, then the child is my dependent. I assume the child will NOT get a check, but will be eligible for a credit when filing the child's taxes for 2020. Is this the same for 2019?
Lastly, do the answers to #2 really just all get "reconciled" when the child files 2020 taxes? If child gets a check now (mid 2019), will count as a credit already received on 2020 taxes. If child does not get a check now (mid 2019), will child get a credit on 2020 taxes - and if so, is this refundable?
