child graduated college May 2022 & lived at home until mid July when started job, how to determine support for dependency test?

[T4Tax]

How do I determine support for the dependency test for a qualifying child in my situation?  My 22 year old daughter was a full-time college student who graduated mid-May 2022.  She lived at home until she started a new job out-of-state on July 18 and moved into an apartment on August 1.  After reading the dependency test, it is my understanding that she meets the requirements for relationship, age, and residency.  I don't know if she qualifies based on the support requirement.  We have claimed her as a dependent every year on taxes so far.  How do I determine this?  She did not pay us to cover any expenses while she lived at home.   We covered food, gas, use of our vehicle, phone, etc.  With her income now, she pays for her own rent, utilities, food, gas.  She's still on our phone plan and is driving our vehicle.  I don't know how to determine who is eligible to claim her.  She will have to file her own tax return for 2022 (this will be her first year filing taxes) due to her new W-2.  I want to make sure she is claimed on the correct return.     

We also have a 1098-T which has a scholarship amount ($7,500) that is greater than the qualified tuition and expenses amount ($4,240) and book expenses ($168).  Is the return that claims my daughter also the return that includes the 1098-T info?

I am at the Personal Info section at the beginning of TurboTax, and I want to make sure I answer the question correctly ("Is ---- info the same for 2022").   

[MonikaK1]

If your 22-year-old daughter was a full-time student for any part of five months during 2022 and lived with you from the beginning of the year until some time in July, she can still be your dependent child for 2022 as long as she didn't provide more than half of her own financial support in 2022. 

You can use the IRS worksheet at this link to help with calculating support.

Claiming a child as a dependent generally requires that they live with you for more than half the year, they don't provide more than half of their own financial support, and are under the age of 19, or under 24 if a full-time student. 

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.

This information is found in the Personal Exemptions and Dependents chapter of Publication 17.

Please also see this tax tips article for more information from TurboTax on claiming dependents.

Your daughter should report the excess scholarship income over qualified expenses on her tax return along with her other wages. In TurboTax, report the excess as income on the “wages and salary” line and enter “SCH” to the left of the amount. 

See this article for more information on this topic.

 [Edited 03/20/23| 3:21pm PST]

 @T4Tax (edited) 

[T4Tax]

I understand that my daughter qualifies as our dependent in the test for relationship, age, and residency.  The difficult qualification to determine is the support category.  The IRS worksheet for determining support is quite daunting.  I have to quantify the fair rental value of our single family home (that we have a mortgage on)?  I have to determine how much was spent on food for the entire year?  Money spent for clothing, travel, recreation, etc for our daughter?  Is there any way to simplify this process to determine who claims the deduction?

Generally, we paid the vast majority of her support while she lived at home, and she's paying the vast majority of her support since she moved.   

[KrisD15]

It doesn't matter that you have a mortgage on your home. 

You should work it out with your daughter. You don't want to get into a situation where two people are claiming the same social security number as a dependent on their returns. 

She lived longer under your roof than on her own (living at school is considered as living at home) so it would SEEM as if she is your dependent for 2022, but again, you should talk with your daughter, compare different expenses and determine the most logical solution.