Both my mother and my mother-in-law want to claim me as dependent

[eat1]

Around last year in May, I moved into my mother-in-laws house with my husband. Now she wishes to claim me as a dependent because I have lived with her for over half of the year. However, my mother also wishes to claim me due to her providing financial support through school as well as sending me money, etc. 

Personally, I would feel more comfortable if my mother claimed me as dependent, as she is where I have received most of my finances throughout the year, however I know that the IRS isn't just going to ask who a 20 year old wants to be claimed under 😅 so I was wondering which person has I guess the upperhand in claiming me?

[rjs]

First of all, if you file a joint tax return with your husband, no one can claim you as a dependent, unless your joint return is filed only to get a refund of all tax that was withheld.

Who can claim someone as a dependent is not determined by an agreement among the parties, or by the comfort of the person being claimed. There are rules about who someone can claim as a dependent. You can find the rules in IRS Publication 501, starting on page 11. The two mothers can each use the tool at the following link on the IRS web site to determine whether they can claim you as a dependent. Or you can use the tool yourself and answer the questions as if you were your mother or mother-in-law.

Whom May I Claim as a Dependent?

[Opus 17]

All this over $500?

Firstly, you can't be claimed by anyone as a dependent if you file a joint return with your spouse, unless the only reason you file is to get a refund of withholding and you claim no deductions, dependents or credits.  This would mean your combined income must be less than $25,000 and you claim the standard deduction and have no other children or tax credits to claim.  If you can be claimed as a dependent, you must check the box on your return that says "yes, I can be claimed as a dependent by someone else."

There are two types of dependent, qualifying child and qualifying relative.

You can't be your mother's qualifying child dependent because you did not live with her more than half the year.  You can't be your mother-in-law's qualifying child dependent because you aren't her child. 

So you can only be a qualifying relative dependent of someone.  You can't be anyone's qualifying relative dependent if you had more than $4300 of taxable income.

If your income is less than that, then to be a qualifying relative dependent of either your mother or mother-in-law, that person must have provided more than half your total living expenses for the year. The person who wants to claim you would have to add up your entire living expenses, and figure the amount provided by everyone involved in your life (yourself, your spouse, your mother, and mother-in-law) and be able to show the IRS that they provided more than half the overall total.  

Your mother gets credit for a share of your living expenses for 5 months, plus tuition and other financial support.  Your MIL gets credit for a share of your living expenses for 7 months, plus any financial support.  Student loans in your name count as support you provided yourself.  And your spouse may have supported you.

If no single person provided more than half your total support, the only way for anyone to claim you as a dependent is to get an agreement signed by everyone who provided more than 10% of your support that specifies who will claim you (a multiple support agreement). 

It seems likely that either your income or filing a joint tax return will bar both your mother and in-laws from claiming you, but that depends on your actual circumstances.

[DMarkM1]

You are correct.  The IRS Publication 501 has the rules for determining who can be claimed as a dependent.  You will not be a dependent for your spouse; you can only be a dependent for your mom.  Three choices in your scenario are:

1.  You file a joint return with your husband and that generally means you are not a dependent.  The exception to this rule is if you and your spouse are filing a return only to claim a refund of withholding then you could still be a dependent for your mom, assuming you meet the other dependency tests as described below.  On your joint return you would indicate that "You can be claimed as a dependent on someone else's return." 

2.  You don't file a return (your spouse may file as Married Filing Separate).  You could then be a dependent to your mom if you meet the dependency tests described below.  

3.  You file a return as Married Filing Separate.  You could be a dependent for your mom if you meet the dependency tests described below.  If you meet the dependency tests then you would indicate on your return that "you could be claimed as a dependent on someone else's return."   

 In the situation you describe the first question is were you a student in 2021?  IRS Publication 501 describes a student as: 

"Student defined.

To qualify as a student, your child must be, during some part of each of any 5 calendar months of the year:

1. A full-time student at a school that has a regular teaching staff, course of study, and a regularly enrolled student body at the school; or

2. A student taking a full-time, on-farm training course given by a school described in (1), or by a state, county, or local government agency.

The 5 calendar months don't have to be consecutive.

Full-time student.

A full-time student is a student who is enrolled for the number of hours or courses the school considers to be full-time attendance.

School defined.

A school can be an elementary school, junior or senior high school, college, university, or technical, trade, or mechanical school. However, an on-the-job training course, correspondence school, or school offering courses only through the Internet doesn't count as a school.

Vocational high school students.

Students who work on “co-op” jobs in private industry as a part of a school's regular course of classroom and practical training are considered full-time students."

If you were a student, the next question is did YOU provide over 1/2 of your own support? 

If no, the next question is will you be filing a joint return with your spouse? 

If no (or yes under special circumstances), then you can be a dependent of your mom.

If you fail any of the above tests to be a qualifying child, then you may still qualify as her dependent under the qualifying relative rules.

The first question for a qualifying relative is was your gross income less than $4300 for tax year 2021? 

If yes, did your mother provide over 1/2 of your total support?

If yes, then you would be her dependent.

IRS Publication 501 has more detailed information if needed.