There are two types of dependents, "Qualifying Children"(QC) and
standard ("Qualifying Relative" in IRS parlance even though they
don't have to actually be related). There is no income limit for a QC but there
is an age limit, a relationship test and a residence
test. Only a QC qualifies the taxpayer for the Earned Income Credit. They are interrelated but the rules are different for each.
Since she is over 23, she can no longer be your QC, even if she is a full time student.
A person can still be a Qualifying
relative dependent, if not a Qualifying Child, if he meets the 6 tests for
claiming a dependent:
1. Closely Related OR live
with the taxpayer ALL year
2. His/her gross taxable income for the year must be less than $4,050 (2016). This includes taxable scholarships
3. The taxpayer must have
provided more than 1/2 his support. Scholarships and loans are support not provided by you (unless you are legally obligated for the loan, such as a co-signer)
In either case:
4. He must be a US citizen or resident of the US, Canada
or Mexico
5. He must not file a joint
return with his spouse or be claiming a dependent of his own
6. He must not be the
qualifying child of another taxpayer
