I have a child who is just over 24, does full time school, makes annually over $4,400 from work study pay which goes towards paying off-campus apartment, food, books, etc. I am chipping in for tuition along with her student loan. How do I show her as dependent? TurboTax marks her as independent as soon as I mention her over $4,400 salary.
Here's a rough breakdown of how the expenses are covered -
Her work study salary - 20%
My support - 30%
529 account - 10%
Loan - 40%
Can I claim her as dependent?
No, if she is over 23 and makes more than $4,400 then she cannot be claimed as a dependent. Please see Who can I claim as my dependent? for details.
To further clarify: There age today does not matter. If the student was over the age of 23 *on or before Dec 31* of the tax year, and earned more than $4,300 during that tax year, nobody qualifies to claim them as a dependent.
Thanks for clarifying that. That said, should I continue to show her 1099-T and other school expenses on my taxes or that wont help? Should she file her own taxes even the gross pay was under $12k? One thing I noticed that I should reduce my number of exemptions now. I owe IRS a lot now. Thanks in advance.
@pm92508 TurboTax is following the tax laws. Despite the fact that your "child" is still being supported by you, they are too old to be a qualified child, and made too much to be a qualified relative dependent. That means you have no way to claim them as either kind of dependent. Sorry.
WHO CAN I CLAIM AS A DEPENDENT?
You can claim a child, relative, friend, or fiancé (etc.) as a dependent on your 2022 taxes as long as they meet the following requirements:
Qualifying child
Qualifying relative
When you add someone as a dependent, we'll ask a series of questions to make sure you can claim them. There may be other tax benefits you can get when you claim a dependent.