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New Member
posted Jul 4, 2020 10:24:15 AM

My credit?

My daughter is 27, living at home, and we pay all her living expenses. Do we qualify for the new $500 credit?

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2 Replies
Level 15
Jul 4, 2020 11:27:39 AM

You can get the credit if she can be claimed as a qualifying relative which means her income has to be less than $4,200. 

Level 15
Jul 4, 2020 11:48:05 AM

A "Qualifying Relative", not a qualifying child who must be under age 19 (or 24 if a student).

 

---Tests to be a Qualifying Relative (& Unrelated Persons)---
(Must meet ALL of these tests to be a dependent)

1. The person cannot be your qualifying child or the qualifying child of any other taxpayer.

2. The person either must be related to you, or must live with you all year (all 365 days - There are exceptions for temporary absences such as school, illness, business, vacation, military service) as a member of your household.

3. The person's gross income for the year must be less than $4,200 (tax-exempt income, such as certain social security benefits, is not included in gross income)

4. You must provide more than half of the person's total support** for the year.

5. The person is not filing a joint return.

In any case, the person must be a U.S. citizen, U.S. resident alien, U.S. national, or a resident of Canada or Mexico

The above is simplified; see IRS Publication 501 for full information.
https://www.irs.gov/publications/p501#en_US_2018_publink1000220939

** Worksheet for determining support
https://www.irs.gov/publications/p501#en_US_2019_publink1000226268