Claim as dependent or should she flle on her own?

[mpolite2]

Hi All.

This year the tax breakdown will be a little different for me and my daughter.

She is a 20 yr old full time student who lives with me.

She received a 1098-T for receiving scholarships.

She received a W2 for work in 2023 but that was less than $4000.

She received a 1099 S due to the sale of her late mother's house .

With this information am I allowed to claim/should I claim her this tax year?

[Mike9241]

maybe not. the support test is the major issue. I have eliminated certain criteria which I thing is met'

Qualifying child – and eligible to be claimed as a dependent the rules are:
1) Must be either: a) under 19 at the end of the year and younger than the taxpayer claiming or b) under 24 at the end of the year and a full-time student. A full-time student is one who is enrolled full-time in school (but not online or correspondence schools) during any part of 5 calendar months during the calendar year or took a full-time course of institutional on-farm training under the supervision of an accredited agency.

This test is met

2) Hasn’t provided over ½ their own support. Taxable or nontaxable scholarship payments are ignored in determining support. The issue is the proceeds from the house sale. 

see IRS worksheet for determining support

https://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf 

or use the IRS website to see if she qualified as a dependent

 https://www.irs.gov/help/ita/whom-may-i-claim-as-a-dependent 

[Bsch4477]

You can claim her as long as she didn’t provide more than half of her support. It doesn’t matter how much money she made as long as she didn’t use it for support. It’s usually better for you to claim her.