Q. Do i only claim her for 6 months?
A. No. Part year dependents are not allowed. If she is not your dependent, for 2023, you cannot claim her 1098-T.
Since she graduated in May, she was a fulltime student for parts of 5 calendar months. That means she may still qualify as your "Qualifying Child" (QC) dependent, for 2023.
There are two types of dependents, "Qualifying Children"(QC) and Other ("Qualifying Relative" in IRS parlance even though they don't have to actually be related). There is no income limit for a QC but there is an age limit, student status, a relationship test and residence test.
A child of a taxpayer can still be a “Qualifying Child” (QC) dependent, regardless of his/her income, if:
- He is under age 19, or under 24 if a full time student for at least 5 months of the year, or is totally & permanently disabled
- He did not provide more than 1/2 his own support. Scholarships are excluded from the support calculation
- He lived with the parent (including temporary absences such as away at school) for more than half the year
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So, it doesn't matter how much she earned. What matters is how much she spent on support. Money she put into savings does not count as support she spent on herself.
The support value of the home, provided by the parent, is the fair market rental value of the home plus utilities & other expenses divided by the number of occupants.
The IRS has a worksheet that can be used to help with the support calculation. See: http://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf
