topic Question on When to Claim Adult Child as Dependent in Get your taxes done using TurboTax

Question on When to Claim Adult Child as Dependent

VASSART — Fri, 28 Feb 2025 19:42:11 GMT

Hi. My 22 year-old daughter had been going to undergrad for past 3 years, and I was paying for college plus her apartment and expenses. Thus, I claimed her as dependent. I assumed this year I would do the same and so gave my daughter $900/month to cover her expenses (throught July). She then received a fellowship from UNC for Grad school for full ride ($22k per year plus 10k stipend), and here W2s show 10k for the total year. I stopped giving her the $900/month from August forward. She physically moved to North Carolina, out of my state, in mid-June.

So, my question is this - I was obviously paying more than half of here living expenses for the first 7 months of the year, but if you compare my contributions of $6300 + 4k college costs that I paid to her full-year W2s, she made more than I contributed. Thus, I did not pay "over half of her expenses". Nor did she physically live with us for more than half the year, although she is still a full time student.

So, am I right to assume I can no longer claim her as a dependent for this year? It matters a lot because I had included her on my ACA account through July, and removing her as a dependent now forces me to repay about $2500 to $3000 of that credit, plus I lose the $500 and the American Opportunity Credit ($2500).

Re: Question on When to Claim Adult Child as Dependent

Bsch4477 — Fri, 28 Feb 2025 19:51:37 GMT

A scholarship for a full time student is not considered in the support calculation for dependency. You have to calculate whether she provides more than half of her own support exclusive of the scholarship. For example, she might save a good portion of her income rather than use it for her support.

Re: Question on When to Claim Adult Child as Dependent

VASSART — Fri, 28 Feb 2025 20:54:53 GMT

Thanks. I will choose not to claim her based on that response. I have a follow-up question, since this decision means I have to allocate 1095A ACA amounts to my daughter ...

For the form 1095A when I am allocating percentages between myself and my daughter, and I paid thru June, she paid July and then I removed her altogether from my Marketplace coverage from Aug to Dec, can report the same ACA number under 2 allocation rows (Jan thru June with myself 100% and a second allocation for July and myself as 0%), OR do I just list the ACA number once for all 7 months with me as 85% and daughter as 15%?