"Be sure to amend your return first as they will not be able to electronically file their return with you listed as a dependent since you have filed your return as if you were independent"
That's not exactly correct. It will takes months for your amended return to be processed. If your parents are going to claim you, e-filing is essentially no longer available to them. They have to file a paper return. But, they do not need to wait until your amended return is fully processed. They can file a paper return now. Their refund will take 6-8 weeks.
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There are two types of dependents, "Qualifying Children"(QC) and standard ("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, a relationship test and a residence test. Only a QC qualifies a taxpayer for the Earned Income Credit.
So, if you don't meet the QC rules (e.g. you're over age 23 or no longer live with your parents), at the other reply, a person can still be a Qualifying relative dependent, if not a Qualifying Child, if he meets the 6 tests for claiming a dependent:
- Closely Related OR live with the taxpayer ALL year
- His/her gross taxable income for the year must be less than $4200 ($4150 in 2018)
- The taxpayer must have provided more than 1/2 his support
In either case:
- He must be a US citizen or resident of the US, Canada or Mexico
- He must not file a joint return with his spouse or be claiming a dependent of his own
- He must not be the qualifying child of another taxpayer
