Can we claim our 37 Y.O. daughter as a dependent?

[lrugiel]

She is divorced, 3 small kids, shared custody with ex. She lost job, no income in 2016, has been in jail or rehab. Not sure when she would be released & needed a fixed address so she could get out: we paid med. insurance and all other living expenses, including 1/2 daycare so she could get her life together, get a job & move on.  

Can we claim her as a dependent, as well as med. ins. we paid for her & daycare costs for kids?

[bwa · Accepted solution]

You can claim your adult son or daughter if they are your qualifying relatives. To be a qualifying relative (i.e., a dependent),

• you must provide more than 1/2 of the individuals support,
• they must not earn more than $4,050 in 2016 of income subject to tax (social security doesn't count)
• they must not file a joint return with another
• If not an actual relative, they must live with you all days of the year, and
• they are not a qualifying child of another taxpayer.

Also, all dependents must be citizens of the US, or residents of the US, Canada or Mexico.

You can claim their children (your grandchildren) that live with you if your son or daughter do not claim them, they live with you more than 1/2 of the year, and your income is higher than your child's income.

[lrugiel]

Thanks for the reply; what about claiming her medical expenses and 1/2 daycare? (since she has been in jail, the children have been living exclusively with their father, but per divorce agreement, they alternate claiming them as dependents (2 one year, 1 the next), but also per agreement, they split the daycare expenses, which we have paid.

[bwa]

what about claiming her medical expenses and 1/2 daycare?

If she qualifies as your dependent you can claim medical expenses, including insurance, that you paid for her.  Even if you can't claim her because of her income, you can still deduct her medical expenses you paid if you provided more than 1/2 of her support.

and 1/2 daycare?

Sorry, but as it wasn't paid so you can work it wouldn't be eligible for the credit.  The credit is for your child in daycare, not your daughters.