Hal_Al
Level 15

Education

There are two possible issues***, in your question.

 

1. Did you provide more than half your own support WITH EARNED INCOME.  This determines if you are subject to the "kiddie tax" and whether you are eligible to claim the refundable portion of the American Opportunity credit.

2. Did you provide more than half your own support, by any means.  This, plus two other tests* determines whether you can be claimed as a dependent by your parents. 

 

The answers to both questions is no.  Scholarships are not earned income.** Your scholarships, alone,  exceeds your earned income, so the answer to #1 is no.  Scholarships are considered third party support, and not support provided by the student, so the answer to #2 is also no.

 

*A child of a taxpayer can still be a “Qualifying Child” (QC) dependent, regardless of his/her income, if:

  1. 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
  2. He did not provide more than 1/2 his own support. Scholarships are considered third party support and not as support provided by the student. Note that there is no requirement that the parent provided any support at  all; only that the student didn't provide more than half his own support. 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.
  3. He lived with the parent (including temporary absences such as away at school) for more than half the year

**Scholarships are not earned income for most tax purposes, including the ones above. But, scholarship money is treated as earned income for purposes of calculating a dependent's standard deduction.

 

***There's third issue, this year; eligibility for the stimulus payment.  A dependent, or someone who CAN be claimed as a dependent, is not eligible for his own $1200.

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