Qualifying Relative

[rkrchu2012]

My daughter turned 25 in March of 2019. She started a vocational school in July. She has no income. When she applied she was over 24 (so I guess not dependent) and so her schooling is covered half in grants and half in loans, which will be paid six months after she graduates. The grants go directly to the school, not to her. Can I claim her as a qualifying relative since she has no income and lives at home, or does she have to file taxes as independent, even though she has no income because of the schooling?

[DoninGA]

You can claim her as your dependent under the Qualifying Relative rules if she meets all the requirements.

To be a Qualifying Relative -

1. The person cannot be your qualifying child or the qualifying child of any other taxpayer. A child is not the qualifying child of any other taxpayer if the child's parent (or any other person for whom the child is defined as a qualifying child) is not required to file an income tax return or files an income tax return only to get a refund on income tax withheld.
2. The person either (a) must be related to you or (b) must live with you all year as a member of your household.
3. The person's gross income for the year must be less than $4,200 (social security does not count) in 2019
4. You must provide more than half of the person's total support for the year.
5. The person must be a U.S. citizen or a U.S., Canada, or Mexico resident for some part of the year.
6. The person must not file a joint return with their spouse.

[rkrchu2012]

Thank you! She does meet all those requirements, but just so I’m clear, how she applied for school loans and grants (based on her income - which is 0) has no affect on whether or not I can claim her?

[DoninGA]

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@rkrchu2012 wrote:

Thank you! She does meet all those requirements, but just so I’m clear, how she applied for school loans and grants (based on her income - which is 0) has no affect on whether or not I can claim her?

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No, her applying for school loans and grants does not affect whether or not you can claim her as your dependent.  If she has no income and you provided over one-half of her support and she meets the other requirements then she is your dependent.

[rkrchu2012]

Thank you!