@FROA wrote:
If I may rephrase - can my son claim himself (I will not claim him) so that he can qualify for college tuition help from the federal and/or state?
Under the tax laws, if he qualifies to be claimed as a dependent, he must check the box that says "I can be claimed as a dependent by another taxpayer" even if he doesn't want to be claimed and even if you don't want to claim him.
If he can be claimed, but is not claimed by you, he might be eligible for part of the American Opportunity Credit in his own name instead of you claiming it on your tax return. But to get any part of the credit, he must have taxable income of more than $12,550.
If he could be claimed, but is not actually claimed by you, I don't know how that would affect his financial aid. However, if he falsely answers "No-one else can claim me as a dependent" that could be considered tax fraud, as it would qualify him for a stimulus payment and possibly other tax benefits.
For the rules, see here.
https://www.irs.gov/pub/irs-pdf/p501.pdf
There are two main ways that he would no longer qualify to be your dependent:
1. He provides more than half his own support. Support he provides himself includes money he earns, as well as student loans taken out in his name. Support that you provide includes the value of housing (if he lives at home over the summer), food, clothing, travel, medical insurance (if you provide it) and tuition (if you help pay). If he provides more than half his own support, he can't be claimed as a dependent. Some students, if they have a good side job and large loans in their own name, will put themselves over that 50.1% threshold.
2. He does not live more than half the year in your home. College students are considered to "live at home" because being away at college is considered a temporary absence. However, if he has definitely moved out and established an independent residence that he pays for, he might be considered to no longer "live at home." There is no black-letter rule for this, it depends on the facts and circumstances.
