Depending on the amount of the excess scholarship income and any other income she receives, you might not be able to claim your 28-year-old child as a dependent.
Claiming a child as a dependent generally requires that they live with you for more than half the year, they don't provide more than half of their own financial support, and are under the age of 19, or under 24 if a full-time student.
Adult children can be claimed as Other Dependents but will have to meet the gross income test unless they are totally and permanently disabled. Gross income is the total of a taxpayer's unearned and earned income. If their gross income was $4,400 or more, you can't claim them as a dependent unless they are disabled.
If her income doesn't exceed the filing threshold, then she isn't required to file unless she has $400 or more of net profit from self-employment. She may wish to file her own return for financial aid purposes. If she qualifies as your dependent, she would need to indicate that on her separate return.
The income of your adult child is not reportable on your tax return regardless of whether she is your dependent.
Please see this tax tips article for more information on claiming dependents.
Please see this tax tips article for more information regarding who is required to file a return.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
