I am trying to determine if my daughter is a dependent. According to these rules she is a qualifying child but not a qualifying relative.
Qualifying Child
Relationship — the taxpayer’s child or stepchild (whether by blood or adoption), foster child, sibling or step-sibling, or a descendant of one of these.
she is my and (my wife's) biological daughter
Residence — has the same principal residence as the taxpayer for more than half the tax year. Exceptions apply, in certain cases, for children of divorced or separated parents, kidnapped children, temporary absences, and for children who were born or died during the year.
she lived at our home from Jan 1, 2020 to July 8, 2020, so just over 6 months
Age — must be under the age of 19 at the end of the tax year, or under the age of 24 if a full-time student for at least five months of the year, or be permanently and totally disabled at any time during the year.
she turned 23 in April 2020 and was a full-time student from Jan - May (her final semester at the university where she earned her Bachelors degree)
Support — did not provide more than one-half of his/her own support for the year.
While living at home, we paid all of her living expenses, including food. We also paid for her tuition. When she moved on July 8th, we drove her and her belongings to Cambridge, MA for her new job. We paid for all the moving expenses, including renting a U-Haul trailer. She has been on her own and has earned a decent salary since starting this job. If you consider all of her living expenses over the last year, how do we compare how much it was while she was home versus while she is living in her new apartment?
Qualifying Relative
You can claim a child, relative, friend, fiancé (etc.) as a dependent on your 2020 taxes as long as they meet all of the following requirements :
- You provided more than half of their financial support.
- They made less than $4,300 in gross income during 2020 unless they are a qualifying child.
- They live with you or they are related to you.
- They are a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
- They aren't (or won't be) claimed as a dependent by someone else.
- They aren’t filing a joint return with their spouse.
- You are not being claimed as a dependent on someone else's return.
She has earned more than $4,300 in gross income during 2020, so she does not meet the requirements for a qualified relative.
