Daughter dependent or not?

[ld1995]

Hello!
My daughter was a full time student until May of this year in which we supported her.  If she started a full time job in mid-June can we still claim her?

In regards to below all questions are yes but uncertain about support because after June she supported herself.

A "qualifying child" means:

• They're related to the person claiming them
• They aren't claimed as a dependent by someone else
• They're a U.S. citizen, resident alien, national, or a Canadian or Mexican resident
• Unmarried or, if married, not filing a joint return or only filing a joint return to claim a refund of income tax withheld or estimated tax paid
• They're under the age of 19 (or 24 for full-time students)
• There’s no age limit for permanently and totally disabled children
• They lived with the taxpayer for more than half the year (exceptions apply)
• They didn't provide more than half of their own support for the year

Please advise.

Thank you!

[DoninGA]

Did she provide over one-half of her own support for the year?  If so, you cannot claim her as a dependent under the Qualifying Child rules, assuming she is under the age of 24 in 2021.

To be a Qualifying Child -

1. The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them.
2. The child must be (a) under age 19 at the end of the year, (b) under age 24 at the end of the year and a full-time student or (c) any age and permanently and totally disabled.
3. The child must have lived with you for more than half of the year. Temporary absences while away at college are considered living with you.
4. The child must not have provided more than half of his or her own support for the year.
5. If the child meets the rules to be a qualifying child of more than one person, you must be the person entitled to claim the child as a qualifying child.
6. The child must be a U.S. citizen or U.S., Canada or Mexico resident for some portion of the year.
7. The child must be younger than you unless disabled.

[AmeliesUncle]

You can fill out the IRS Support Worksheet to help you figure out if she paid for over half of her own support.

https://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf

[ld1995]

When entering in TT, it asks if she made greater than $4300.  When saying yes, it says she can't be a dependent. 

So where does the worksheet come into play? From June-Dec she made greater than 35K.

If using worksheet, do i calculate her living expenses for the 5 months on campus (rent, utilities, etc.) plus her portion of our home?  How do i even begin to calculate clothing, travel?

If we don't claim her, then she is able to receive recovery rebate.  please advise

Thanks

[DaveF1006]

Based on the $35K income she made, she does not qualify to be your dependent. According to the IRS, she

was eligible for the full amount of the third Economic Impact Payment if:

• are a U.S. citizen or U.S. resident alien (and their spouse if filing a joint return), and
• are not a dependent of another taxpayer, and
• had adjusted gross income (AGI) that is not more than:
  • $150,000 if married and filing a joint return or if filing as a qualifying widow or widower
  • $112,500 if filing as head of household or
  • $75,000 for any other filing status

Before she claims the rebate on her tax return, make sure you didn't receive a $1400 for her if you claimed her as a dependent in 2020. There was a $1400 stimulus payments for taxpayers and dependents based from the 2019 and 2020 tax return. Don't instruct her to claim the rebate if you have already received a stimulus payment for her. You and your spouse should receive a letter from the IRS reporting the stimulus payments they sent to you.

You can also securely access your individual tax information with an IRS online account to view your total Economic Impact Payment amounts under the 2021 tax year tab. Please read this link from the IRS for more details.

[ld1995]

@DaveF1006  Thanks for your answer but wanted to clarify as she was a student until May 2021 and then exceeded the income limit.  Does that still apply to your response?

Thanks 

[DawnC]

On the dependent questions in TurboTax, after you entered the birthdate, TurboTax would have asked that question (was she a full-time student).   If she was, then she qualifies to be your dependent if she did not provide 50% of her own support.   If she was not a full-time student, the worksheet does not come into play, only her income.  

For the full-time student question:

The taxpayer's child qualifies as a student if he or she was enrolled as a full-time student at a school during any 5 months of the year or took a full-time on-farm training course during any 5 months of the year.

How you answer that question will determine whether or not the support worksheet comes into play.   If she was a student in Jan, Feb, March, April and May, you should answer YES to the student question and you can claim her if she did not provide over 50% of her own support.   

***  For your child dependent, you can claim them if they do not provide over half of their support - income doesn't matter.    For adult dependents (non-students), you have to provide more than 50% of their support in order to claim them as a dependent on your tax return - income can't be over $4300.       

And everything in the tax world is for the full year.   This is no pro-rating or part-time dependency.   She is either a dependent for all of 2021 or not a dependent in 2021.  

[ld1995]

@DawnC 

Understood.  Figuring calculation of 50% of support that is my question.   She made greater than 30K in the 6 months after graduation. Seems like that would be over and above our support during the time at school?

the worksheet asks for 1)funds belonging to the person supported -both income and savings

2) living expenses : does that include listed expenses you mentioned at both 'home'(ours - her portion) and rent/utilities/food for her off campus at out of town school ?

3)then she covered all living after school

Thanks

[ErnieS0]

The dependent qualifications are for the whole year, not just for the time your daughter was in school.

You'd have to estimate her total living expenses at both your home, her college and once she was on her own. Then you'd see whether she provided more than half her support.

[ld1995]

Just a note .  unless i input something incorrectly in TT, I only get the question if she was a full time student AFTER the question of how long did she live in my home.  If I answer 6 months, the $4300 question comes up.  If I answer 7, then i get the question about full time student.

So uncertain how 5 months of college qualifies ?  

[VolvoGirl]

Being away at schools counts as time living with you.  

[ld1995]

yes but she lived at school until May and moved in June on her own so that is under the 6 months, correct?

[ColeenD3]

Yes, if she moved away in June, then that is under 6 months.

In regard to support; support covers everything. It is not just food, clothing, education, and a roof over someone's head. It is the amount spend on movies once a week, the $50 you spend buying candy at the mall, getting your shoes repaired, etc. It is every penny spent. While you are probably looking at big-ticket items, if she spend $30,000 on her own support, she spent over half if you spent $29,999.

[SweetieJean]

How old is she?