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clarkjes0726
New Member

Can my parents claim my children and I as dependants?

I am 20 years old. I have two children and moved back with my parents since last year due to a bad relationship and college. I graduated from college (funds paid for by student loans) in May. Since then I've worked Full time and have made 15,000 in 2017. I moved back out in October. I lived with my parents rent free, but provided my children's clothing, insurance, food, transportation etc. my parents think "legally" they can claim my children and I. Is this true?

1 Best answer

Accepted Solutions
Hal_Al
Level 15

Can my parents claim my children and I as dependants?

There are two types of dependents, "Qualifying Children"(QC) and standard ("Qualifying Relative" in IRS parlance even though they don't have to actually be related). There is no income limit for a QC but there is an age limit, a relationship test and residence test. Only a QC qualifies a taxpayer for the Earned Income Credit and the Child Tax Credit. They are interrelated but the rules are different for each.

A child of a taxpayer can still be a “Qualifying Child” (QC) dependent, regardless of his/her income, if:

1. He is under age 19, or under 24 if a full time student for at least 5 months of the year, or is totally & permanently disabled

2. He did not provide more than 1/2 his own support. Scholarships are considered third party support and not as support provided by the student.

3. He lived with the parent (including temporary absences such as away at school) for more than half the year

 So, it doesn't matter how much he earned. The $4050 income rule doesn't apply. What matters is how much he spent on support. Money he put into savings does not count as support he spent on him self.

That said, it's not clear that rule #2 is met. Student loans, that the parent didn't co-sign, are support provided by the student. The IRS has a worksheet that can be used to help with the support calculation. See: http://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf The support value of the home the parents provided is the fair market rental value of the home plus utilities & other expenses divided by the number of occupants.

____________________________________________________________________________________________________

Even if your parents cannot claim you, they can claim your children. It is legal to do so, but, only if you let them. 

A child closely related to a taxpayer can be a “Qualifying Child (QC)” dependent, regardless of the child's income, if:

1.              He is under age 19, or under 24 if a full time student for at least 5 months of the year, or  is totally & permanently disabled

2.              He did not provide more than 1/2 his own support

3.              He lived with the relative (including temporary absences) for more than half the year

4.              He is younger than the relative (not applicable for a disabled child)

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 (this essentially means that you have the parent’s permission to claim the child, if the child also lived with the parent more than half the year)

6.              If the parents of a child can claim the child as a qualifying child but no parent so claims the child, no one else can claim the child as a qualifying child unless that person's adjusted gross income (AGI) is higher than the highest AGI of any of the child's parents who can claim the child.

https://turbotax.intuit.com/tax-tools/tax-tips/Family/Rules-for-Claiming-a-Dependent-on-Your-Tax-Ret...

View solution in original post

14 Replies
clarkjes0726
New Member

Can my parents claim my children and I as dependants?

Also there is a child support order, and judge said That I would be the one claiming kids on taxes. And not their father. He got reduction on monthly payments due to this...
SweetieJean
Level 15

Can my parents claim my children and I as dependants?

The IRS does not care about that. A state court cannot overrule Federal tax law.
Hal_Al
Level 15

Can my parents claim my children and I as dependants?

There are two types of dependents, "Qualifying Children"(QC) and standard ("Qualifying Relative" in IRS parlance even though they don't have to actually be related). There is no income limit for a QC but there is an age limit, a relationship test and residence test. Only a QC qualifies a taxpayer for the Earned Income Credit and the Child Tax Credit. They are interrelated but the rules are different for each.

A child of a taxpayer can still be a “Qualifying Child” (QC) dependent, regardless of his/her income, if:

1. He is under age 19, or under 24 if a full time student for at least 5 months of the year, or is totally & permanently disabled

2. He did not provide more than 1/2 his own support. Scholarships are considered third party support and not as support provided by the student.

3. He lived with the parent (including temporary absences such as away at school) for more than half the year

 So, it doesn't matter how much he earned. The $4050 income rule doesn't apply. What matters is how much he spent on support. Money he put into savings does not count as support he spent on him self.

That said, it's not clear that rule #2 is met. Student loans, that the parent didn't co-sign, are support provided by the student. The IRS has a worksheet that can be used to help with the support calculation. See: http://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf The support value of the home the parents provided is the fair market rental value of the home plus utilities & other expenses divided by the number of occupants.

____________________________________________________________________________________________________

Even if your parents cannot claim you, they can claim your children. It is legal to do so, but, only if you let them. 

A child closely related to a taxpayer can be a “Qualifying Child (QC)” dependent, regardless of the child's income, if:

1.              He is under age 19, or under 24 if a full time student for at least 5 months of the year, or  is totally & permanently disabled

2.              He did not provide more than 1/2 his own support

3.              He lived with the relative (including temporary absences) for more than half the year

4.              He is younger than the relative (not applicable for a disabled child)

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 (this essentially means that you have the parent’s permission to claim the child, if the child also lived with the parent more than half the year)

6.              If the parents of a child can claim the child as a qualifying child but no parent so claims the child, no one else can claim the child as a qualifying child unless that person's adjusted gross income (AGI) is higher than the highest AGI of any of the child's parents who can claim the child.

https://turbotax.intuit.com/tax-tools/tax-tips/Family/Rules-for-Claiming-a-Dependent-on-Your-Tax-Ret...

View solution in original post

clarkjes0726
New Member

Can my parents claim my children and I as dependants?

Thank you this cleared up a lot of confusion I had!
Critter
Level 15

Can my parents claim my children and I as dependants?

Yeah it is ... since you were a qualifying dependent of your parents you cannot claim dependents of your own and since the children lived with them for more than 1/2 they year they can claim them and you.

clarkjes0726
New Member

Can my parents claim my children and I as dependants?

How so? I made more than 4,000 and they didn't provide more than half of my children's support..
SweetieJean
Level 15

Can my parents claim my children and I as dependants?

You were a full time under age 24.
"I lived with my parents rent free" That counts towards support, as do utilities.
Critter
Level 15

Can my parents claim my children and I as dependants?

Income is immaterial since you were a full time student under the age of 24.  And they don't have to provide the support ... as qualifying children the child themselves could not provide more than 1/2 of their own  support ... which means for you too for the same reason.
SweetieJean
Level 15

Can my parents claim my children and I as dependants?

Critter is correct.
clarkjes0726
New Member

Can my parents claim my children and I as dependants?

I understand but I was also classified as an independent student going into college. I had to fill out paperwork saying I had children, and their income wasn't taken into consideration at all. If that makes a difference. They didn't help pay for my education at all. And I graduated and literally have made over 15 grand since then.. I guess I'm just confused.
Critter
Level 15

Can my parents claim my children and I as dependants?

What you told the college and what the IRS rules are may not be the same thing.
clarkjes0726
New Member

Can my parents claim my children and I as dependants?

Does it make a difference about child support? There is an order for it. And their dad got a reduction on monthly payments (because he could've been able to claim the children on his returns due to providing support) but the judge gave me the authority to claim them.
clarkjes0726
New Member

Can my parents claim my children and I as dependants?

He got a Reduction on payments due to that. ^
Hal_Al
Level 15

Can my parents claim my children and I as dependants?

Child support is irrelevant.  The custodial parent has first priority on claiming the children on her taxes; regardless of the amount of support provided by the non-custodial parent. The IRS goes by physical custody, not legal custody.The non-custodial parent can only claim the child as a dependent if the custodial parent gives permission (on form 8332) or if it's spelled out in a pre 2009 divorce decree.
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