For taxes, there are two main reasons*** for being classified as a Full Time Student (FTS). One is for qualifying for tuition credits and the 2nd is for qualifying as a dependent, under the "Qualifying Child"* rules.
Yes, she was a FTS for the tuition credit**. But, she was not a FTS for the qualifying child dependent rules, because the 5 month rule was not met. If she had started classes January 31 or sooner, the answer would be different.
*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
She cannot be your dependent for 2023, unless her income was less than $4700, which meets the "qualifying relative" rules.
**Although it usually doesn't matter, as half time or more qualifies for the credit. There's one unique situation where not being a FTS is a benefit. She can claim the refundable credit, if she not a dependent.
***Note: there are other tax attributes where being a full time student might matter; e.g. dependent care credit and the Retirement Savers Credit.
