Filing status for Daughter

[Sack321]

In 2019 on my tax return my daughter was not claimed as a dependent so that she could become a resident of the state of Missouri.  She is a full time college student living in Missouri and not with her family in Colorado.  Her expenses are paid through a 529 investment account in her name.  She also works part time and had earned income of approximately $6,700 and capital gains of approximately $1,200 from a taxable investment account under her name.  Her withdrawals from the 529 account were approximately $29,000.  Her college expenses including room and board were approximately $32,000.  Given that information, is she required to answer yes that she can be claimed as a dependent on my family return?  This obviously makes a big difference for her refund and our family return.

[DavidD66]

If she is under 24 and a full time student, she qualifies as your dependent, if she didn't provide more than half of own support for the year.  Support does not include school costs  (e.g. tuition, books, etc.).   For more information, see the following TurboTax Help articles:

Who can I claim as my dependent?

Rules for Claiming a Dependent on Your Tax Return

And here is an IRS online tool:

IRS Interview Tool - Whom May I Claim as a Dependent?

[Sack321]

Thanks.  The challenge I have is that we don't pay for more than 50% of her support as most comes from her 529 account for room and board and she is Missouri resident.  Does any of that matter?

[Sack321]

Also, I meant for 2020 not 2019 above.

[Critter-3]

Support is not a concern at her age.

[Sack321]

So, basically, she is a dependent no matter what since she is a student?

[Sack321]

Also, the 529 plan funds were used for room and board and she made approximately $7k.  That seems to tell me that she provided more than 50% of her support?

[Sack321]

So, even if we calculate that she paid more than 50% because of income and room and board being paid from her 529 she is still a dependent?

[Critter-3]

Short answer :  SHE cannot be SELF supporting using funds from WORK ... the 529 plan is not earned income.