Can my parents claim me on their 2021 tax return since I was a full-time student, and my expenses paid for by my parents, even though I am working and filling my taxes?

How old were you at the end of 2021?   If you were a full-time student under the age of 24 at the end of 2021 and you were being supported by your parents, they can claim you as a dependent.   

You can still file a tax return to seek a refund of tax withheld but on your own tax return you have to say that you can be claimed as someone else's dependent.

WHO CAN I CLAIM AS A DEPENDENT?

You can claim a child, relative, friend, or fiancé (etc.) as a dependent on your 2021 taxes as long as they meet the following requirements:

Qualifying child

• They're related to you.
• They aren't claimed as a dependent by someone else.
• They're a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
• They aren’t filing a joint return with their spouse.
• They're under the age of 19 (or 24 for full-time students).
• No age limit for permanently and totally disabled children.
• They lived with you for more than half the year (exceptions apply).
• They didn't provide more than half of their own support for the year.

Qualifying relative

• They don't have to be related to you (despite the name).
• They aren't claimed as a dependent by someone else.
• They're a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
• They aren’t filing a joint return with their spouse.
• They lived with you the entire year (exceptions apply).
• They made less than $4,300 in 2021.
• You provided more than half of their financial support.

When you add someone as a dependent, we'll ask a series of questions to make sure you can claim them. There may be other tax benefits you can get when you claim a dependent.

Yes, if you were younger than 24 and a full-time student, you parents can claim you on their tax return. You can file your own tax return but you need to indicate that you are a dependent on someone elses's tax return. Here are the qualifying child's requirements that your parents need to know to determine if you are a dependent. 

• Are they related to you? The child can be your son, daughter, stepchild, eligible foster child, brother, sister, half brother, half sister, stepbrother, stepsister, adopted child or an offspring of any of them.
• Do they meet the age requirement? Your child must be under age 19 or, if a full-time student, under age 24. There is no age limit if your child is permanently and totally disabled.
• Do they live with you? Your child must live with you for more than half the year, but several exceptions apply such as time away spent in school.
• Do you financially support them? Your child may have a job, but that job cannot provide more than half of her support.
• Are you the only person claiming them? This requirement commonly applies to children of divorced parents. Here you must use the “tie breaker rules,” which are found in IRS Publication 501. These rules establish income, parentage and residency requirements for claiming a child.

[ Edited 02/03/22|03:10 PM PST]

If the student:

 - Is under the age of 24 on Dec 31 of the tax year and;

 - Was enrolled as a full time student for any one semester that started during the tax year and;

 - Was enrolled at an accredited institution and;

 - Was enrolled in a program of study that will lead to a degree or certification and;

 - The *STUDENT* did not provide more than half of "THEIR OWN" support for the entire tax year, then;

The parents qualify to claim the student as a dependent on their tax return.

NOTES:

1) There is no requirement for the parents to provide the student any support. Not a single penny. The support requirement is on the student, and only the student. There are only two possible ways the student can provide more than half of their own support.

     A. The student has a W-2 job or is self-employed and earns a sufficient amount of income to justify providing more than half of their own support. The amount earned has to be at least $1 more than the total amount of all other 3rd party income received during the tax year. (Scholarships, grants, 529 distributions, gifts from Aunt Mary, etc. are all 3rd party income and do not count for the student providing their own support.)

     B. The student is the *primary* borrower on a qualified student loan and sufficient funds were distributed to the student during the tax year to justify a claim to providing more than half of their own support. Additionally, the total of all funds distributed to the student during the tax year must be at least $1 more than the total of all 3rd party income (clarified above) received by the student during the tax year.

2. The parents have a choice to claim the student, or not claim the student as a dependent. The student does not have a choice. The key word is "qualify". If the parents "qualify" to claim the student, then the student must select the option for "I can be claimed on someone else's return" on their tax return, if the student is required to file a tax return.  Again, it does not matter if the parents actually claim the student, or not.