Depedent/Independent question in California.

[LJara]

Hello,

I don't know if my sister can be claimed as depedent or if she is independent.

In 2020, she lived with my parents in a rented apartment the whole year. She was 18 years old; her birthday was in May. She graduated from highschool in June and started going to college since august. She applied for subsidy for community college, and later she received some money for her tuition and materials; she took about 12 credits last semester.

Since october, she started working full-time while studying, and she ended up earning about 7500 dollars in 2020. She paid her part of the rent and food since then (she supported herself the last three months). She doesn't have a car. 

Is she still dependent? Or can she file already as independent?

Also, the community college did not send her any document for the help she received, for it is not a loan; Is it necessary to report that too?

Finally, she has only vision and dental insurance from my mother's job; my mother pays for it. Will my sister pay the health insurance penalty?

[CatinaT1]

 Your parents can claim her as a dependent because:

1. She 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. She did not provide more than 1/2 her own support (for the entire year),
3. She lived with the parents for more than half the year (or was away at school).

Because of her age, it does not matter how much money she made.

The money she received from the college it likely listed on her 1098-T under grants and scholarships.  Your parents will need this form for their return. They will claim any Education Credits since she is their dependent.

There is no Federal Heath Insurance penalty.  This site will give you more information on the California Health Insurance Mandate:  Health Care Mandate