Must I claim a dependent?

[Oingofan]

Our 17yo son has always been a dependent on our taxes.  Last year, he started taking college AP classes while in high school that he paid for himself.  As parents, our AGI is above phase out limits and as a result we cannot write any of the tuition off.  As parents, we only get $500 child dependent credit for 2019.

Our son also started doing his own taxes last year as a result of inherited IRA and K-1 loss.  He receives a RMD (1099-R) each year.  He will owe taxes on his return if the parents claim him as a dependent.  However, he will get a large return if he claims himself and the parents drop him as a dependent. 

The question is, must we claim our son as a dependent even if we don't want to?

[KatrinaB48]

Yes, you must claim your child as a dependent since he qualifies as one. The IRS does not permit a person who qualifies as a dependent to file as a nondependent.

[Oingofan]

Thanks for the reply Katrina.  So, I guess I'm confused by the TurboTax verbage.  There is a checkbox that says: Someone else can claim <Son> on their tax return.  Which I checked as that is true.  Then immediately below that, it gives 2 options:

Someone will claim <Son> in 2019

No one will claim <Son> in 2019

If someone can claim their Son, but doesn't...isn't that against the IRS rule you stated?  How could anyone give the last option?  thx!

[MaryK4]

You do not necessarily need to claim your son if you chose not to- but this prevents him from some tax benefits BECAUSE he can be claimed by someone else so you both may lose some benefits.  @Oingofan

[Oingofan]

If we keep him as a dependent, we gain $500 in our return (as parents) and he will need to pay over $90.  If we delete him as a dependent, we lose $500 in our return as parents and states that No One will Claim Him in 2019 he gains over $2700 in his return as he paid for his own tuition.  

I would be happy to give up $500 so he can get his return on the tuition he paid.

[JohnB5677]

The guidelines for dependency are set up to restrict who can be claimed as a dependent.  It does not indicate that you must claim someone as a dependent.  If it is to your family's advantage for your son to file his return independently. That is what you should do.

[Critter]

At his age, although you can choose to not claim him the best he can get on the education credit would be the $90

he will owe....he is not eligible for any of the refundable education credits.