My daughter earned $20000 but lives at home rent free and we pay all living expenses. Can we compensate for her non-dependent status?

[rrnixon1]

I do her taxes as well and she would not be claiming herself as a dependent.

[Lisa995]

How old is she?  Is she a full time student?

[rrnixon1]

She is 24 and works full time. First year she ever made more than $1500

[Lisa995]

So she WILL be claiming herself, you will NOT be able to claim her on your return, sorry.

[KatrinaB · Accepted solution]

If she was the age of 24 on 12/31/2018, then her income would need to be under $4,150 for you to qualify to claim her as a dependent. There is no way to claim her as a non-dependent child. Please view the rules for claiming a qualifying relative below.

• Do they live with you? Your relative must live at your residence all year or be on the list of “relatives who do not live with you” in Publication 501. About 30 types of relatives are on this list.
• Do they make less than $4,150 in 2018? Your relative cannot have a gross income of more than $4,150 in 2018 and be claimed by you as a dependent.
• Do you financially support them? You must provide more than half of your relative’s total support each year.
• Are you the only person claiming them? This means you can’t claim the same person twice, once as a qualifying relative and again as a qualifying child. It also means you can’t claim a relative—say a cousin—if someone else, such as his parents, also claim him.