Claiming a dependent.

[XCV777]

Background information:

I have claimed my daughter as a dependent her entire life.
During college, she lived at home and I claimed her as a dependent

She graduated May 14th 2022, age 23, and I provided more than half of her expenses until August; so that's 7 months of me paying and 5 months of her.
She began full time work in her career field on August 15, 2022
I estimate her gross wages for all 2022 to be $19,000

My Questions:

1. Can I claim her as a dependent?

2. If I can claim her, it is in my, and her, best interest tax wise? Are we better off if I claim her, or is she, and hopefully me, better off if I don't claim her?

[NateTheGrEAt]

hi @XCV777! Thanks for your question today. Tell your daughter congratulations on her graduation - that's a great accomplishment!

Based on the facts you presented - it depends on her birthday as to whether you can claim her as a dependent for 2022. She was a full-time student for part of 5 months of the year, and if she is under age 24 at the end of the year (12/31/22), then she would meet the definition of a qualifying child. There is no income limit for a qualifying child, so she can be your dependent. 

However, if she turned/turns 24 during 2022 then she is no longer young enough to be considered a qualifying child. And with $19,000 income, she makes to much to be considered a qualifying relative. In this case she could not be claimed as a dependent for 2022. 

Whether it benefits you more to claim her as a dependent or not is something you will want to explore by preparing your taxes and hers both ways and seeing who has the biggest tax benefit. It will depend on factors such as your total income and which credits could be available to each of you. 

I hope this information is helpful!

[XCV777]

She will be 24 in 2023.

I will do our taxes both ways and see which is best before filing.

Thanks for your help.