Left my 20 year old as dependent by accident. What now?

[Cruiz72]

I efiled last week and left my 20 year old as dependant. Lives with me, at least part time student, but made 11,000 in 2020. He filed a couple of days ago and got rejected because he did not click the box that he could be claimed on someone else's return.

Should he correct and click the box and I later efile a 1040x at the end of the month

Should he correct and I paper file a 1040x now

Should he correct and I do nothing and hope it does not get audited 

Please help.....

[HelenC12]

I can't recommend which way you should go since I can't see both your tax returns to see which filing gets both the best refunds. If he changes his return to be a dependent, his refund is going to really change.

Since you e-filed your return, he won't be able to e-file his return if he's not your dependent. He'll need to mail it in. This will delay his tax return processing.

• If he is a student, you may still be able to claim him as a dependent, even if he made $11,000 and you won't have to file an amended return and he'll be able to e-file.. See the for rules for dependents. Click here. 

However, if you didn't provide over 50% of his support (food, shelter, heath insurance, clothing, etc.), he won't qualify as your dependent. 

• Once your return gets processed by the IRS, you'll need to amend your income tax return. NOTE: At this time, you're not able to  amend a 2020 income tax return. As of today, it's estimated that the IRS will finalize the 1040X form on 03/18//2021. However check the forms availability to see any updates to that date. 

[Carl]

Just a few things to clarify, that may relate. There's not enough information here to really know for sure. But you did mention he was a student in 2020. Understand that I"m only addressing the dependency requirements. I am not addressing the education tax credits at all. That's a completely separate consideration.

Qualifying Child Dependent

 - Under the age of 19 on Dec 31 of the tax year

********************OR*********************

- 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 a qualified learning institution, and;

- Was enrolled in a course of study that will lead to a degree *or* credentialed certification, and;

- Did not provide more than half of *THEIR* *OWN* support. (scholarships, grants, 529 distributions, money from  mom and dad, gifts from Aunt Mary, and any other 3rd party income to the student. *do* *not* *count* for the student providing their own support.

If all 5 conditions above are met, the student qualifies as your dependent. Several things to note here, are mainly what is *not* clearly stated in the above.

- Understand that the key word here is *QUALIFY*. It does not matter if you actually claim the student as your dependent, or not. If they *qualify* as your dependent, and if the student is required to file a tax return, then the student must select the option for "I can be claimed on someone else's tax return." Again, it does not matter if you actually claim the student as a dependent, or not.

- There is no requirement for the parents to provide the student any support. Not one penny. The support requirement is on the student, and only the student.

- While not unheard of, is is not common for an undergraduate student to be able to provide more than half of their own support for the *entire* tax year, while enrolled as a full time student, even if only for one semester.

- Note that the enrollment requirement is "enrolled" for any one semester as a full time student. There is no attendance requirement, and there is no requirement for the student to actually pass a course. The only thing that I can think of that would negate the student meeting the enrollment requirement, (there may be others) would be if the student dropped a course or courses, as they can usually do in the first 5-7 days of the class start date, and the number of dropped courses was sufficient to put the student's enrollment status for the semester at less than half time.  Generally, if the student is enrolled for "at least" half time, then for taxes they are considered full time. (I said *generally* now, not always.)