“Qualifying Child” Dependent

[hoga]

Context:  I have a daughter who started college in fall of 2020.  We have always supported her and claimed her as a dependent.  I have carefully examined the IRS 5 part test for eligibility to be a “qualifying child” dependent for tax purposes.  I believe she clearly passes the tests except for the age test, about which I am uncertain. 

My daughter turned 19 in August 2020, but presumedly would still pass the age test through age 23 if she remains a “full time” college student.  She started the 2020 fall semester with 12 credit hours enrolled but dropped one class and only completed 9 credit hours.  She did not enroll/complete any college courses previously in 2020.  Her college defines full time status as 12 credit hours per semester.  For tax purposes, would failure to complete at least 12 credit hours negate her full-time student status, disqualify her as my dependent, and prevent me from claiming her on my 2020 return?  Do I have any discretion to go either way in this situation?  There would actually be some financial benefit to her if she is not my dependent in 2020, but first and foremost we want to be legally compliant. 

[ColeenD3]

Full time status is determined by the college. Every school has different criteria. If she did not take the number of classes the school requires, then she is not a full time student. She only has to be full time for 5 months.

[hoga]

Thank you for replying Coleen.  Could you clarify a one thing? 

The school's criteria is expressed in credit hours; it "defines full time status as 12 credit hours per semester." My daughter enrolled in 12 credit hours, but only completed 9 credit hours after dropping a three credit hour course.  What is the determining factor for full-time status, the 12 hours enrolled/attempted or the 9 hours completed? 

[DawnC · Accepted solution]

Enrolled.  But when did she drop the class?   The months after she dropped the class, she would be less-than full-time.  

A full-time student is a student who is enrolled for the number of hours or courses that the school considers to be full-time attendance.

To qualify as a student, the person must be, during some part of each of any five calendar months of the year:

1. A full-time student at a school that has a regular teaching staff, course of study, and a regularly enrolled student body at the school, or
2. A student taking a full-time, on-farm training course given by a school described in (1), or by a state, county, or local government agency.

The five calendar months do not have to be consecutive.

This information is found in the Personal Exemptions and Dependents chapter of Publication 17, Your Federal Income Tax.

[hoga]

Thanks for clarifying!

So my daughter fails the age test due to dropping out of full-time student status.  Can I still claim her as a dependent if she passes all the other tests (relationship, residency, support, not filing joint)?  She definitely does not provide more than half of her own support.  

[ColeenD3]

No, the dependent has to meet all the qualifications for Qualifying Child. She may be considered a Qualifying Relative.

Qualifying Relative

You can claim a child, relative, friend, fiancé (etc.) as a dependent on your 2020 taxes as long as they meet all of the following requirements :

• You provided more than half of their financial support. More info
• They made less than $4,300 in gross income during 2020 unless they are a qualifying child.
• They live with you or they are related to you. (Your relative must live at your residence all year or be on the list of “relatives who do not live with you” in Publication 501.) 
• They are a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
• They aren't (or won't be) claimed as a dependent by someone else.
• They aren’t filing a joint return with their spouse.
• You are not being claimed as a dependent on someone else's return.