Dependent qualification for college daughter

[jhichew]

I did not claim my 20 year old college student as our dependent on my 2022 return because she was applying for residency in Missouri to obtain in state tuition and it was a requirement by MO that she could not be claimed as a dependent on her parent's 2022 tax return.   The application process to become a resident in MO was she had to live in MO 12 months prior to her being accepted as a resident.   In September 2023 her full Missouri residency was granted. 

She made $5300.00 in 2023 but I provided over half of her support. 

My questions are:

1)  Can I claim her as my dependent on my 2023 return since I provided over half her support and she officially was not named a resident of MO until September 15th?

2)  If she chooses on her 2023 return that she cannot be claimed as a dependent on her parent's return and paid $1400 in student loan interest, why is Turbotax saying she is not eligible for the American Opportunity Tax Credit or the the Lifetime Learning Credit?

3)  The dollar number for students providing over half of their support is confusing.  She only made $5300 so is this why she is not getting any education credits ?

Thanks in advance

Now

[AmyC · Accepted solution]

1. At the federal level, there is no reason to not claim her. 

2. Income of $5300 has no tax liability. The credits you mention mainly reduce your tax liability. No tax liability means no refundable credit.

3. Support is a very involved process, including vacations, etc. See IRS Worksheet for Determining Support.