Ex-wife said son made too much money to be my dependent (I claim per divorce decree). He's 19, student for half of 2020. I pay support on him. Is he still my dependent?

[claytonvon1]

The ex-wife's tax preparer said that he made too much money to be a dependent, even though he is a student (lives at home). He filed taxes on his own (like he usually does), but the tax preparer did not state that "someone else claiming him as a dependent".  Per the divorce decree, I claim him as a dependent.  Who is in the wrong?  Me claiming him as a dependent or the tax preparer?

[macuser_22]

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@claytonvon1 wrote:
The ex-wife's tax preparer said that he made too much money to be a dependent, even though he is a student (lives at home). He filed taxes on his own (like he usually does), but the tax preparer did not state that "someone else claiming him as a dependent".  Per the divorce decree, I claim him as a dependent.  Who is in the wrong?  Me claiming him as a dependent or the tax preparer?

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In most states the age of emancipation  (becoming an adult) is age 18.

Once the child becomes an adult (Emancipated child), custody becomes mute and  custody rules no longer apply.(See examples 5 & 6 in Pub 501 for more information)

See “Children of divorced or separated parents or parents who live apart” in IRS Pub 501 for full information.

https://www.irs.gov/publications/p501#en_US_2018_publink1000220904

A divorce decree cannot violate Federal tax law.

[Opus 17]

The "special rules for children of divorced or separated parents" in publication 501 no longer apply to you, there is no state where a 19 year old is still a "minor".

The normal rules still apply.  A child who is 19 can be a dependent of the parent they live with more than half the year, if they are a full time student and did not provide more than half their own support.  If the child is not a full time student, then the child can't be claimed as a dependent by either parent if the child's income is more than $4300.  

When your child turned 18 (or 19 in some states) the court order allowing you to claim him as a dependent even if he does not live with you, lost its legal force and effect. 

[fanfare]

@macuser_22 

moot not mute.

[claytonvon1]

Thank you! That makes complete sense. I’m quickly learning that my confusion is the interpretation of the following sentence that I keep reading:

“ if they are a full time student and did not provide more than half their own support.”

What is defined as “support”. For example, my son made a lot of money (for a kid) but had $0 in expenses. He was clothed, fed, car insurance paid, etc by my ex wife and myself. So, he didn’t “support” himself at all.    He earned more than half of the support needed to raise/house himself, but he didn’t actually spend/pay to support himself. He also made more than half of the child support that I paid (if that is the support they are referring to).  Do you know the interpretation of “support”?  I truly appreciate your time and knowledge. 

[Opus 17]

@claytonvon1 

There is a support worksheet in publication 501 that may help to answer this question.

To try and be brief. The child‘s support needs include room and board, tuition, clothing, medical care, travel and entertainment.  Support that the child pays for himself includes money that the child spends on any of those things that comes from the child’s own sources, including income, savings, or student loans taken out in the child’s own name.  If the child does not spend money on himself, but either spends it on other people (such as a girlfriend or their own child) or saves it, then it does not count as support the child provides himself.  Support provided by the mother, in this case, would include a percentage of the mother’s housing expenses, including rent or mortgage payment, utilities, insurance, and household groceries. For example, if there are three people living in the household, then 1/3 of the mother’s housing expenses count as support that she provides to the child.  You may also provide direct support, such as in the form of paying tuition, or covering the child on your health insurance, or paying child support to the mother or directly to the child.

If the child is a full-time student under the age of 24, then it does not matter who provides the support, as long as the child does not provide more than half his own support.  If he does not provide more than half his own support, and if he lives in the mother’s home more than half the nights of the year, then the mother can claim him as a dependent without reference to your child custody order, because the order is not enforceable as far as the IRS is concerned once the child is emancipated under state law.

If he meets these tests, then his income is irrelevant, as long as he does not spend it on his own support to the level of “more than half”.

If he was not a full-time student, then he falls under a different category of dependent and there is a strict income limit of $4300 in that case.  Note that “full-time student“ means that the child was a full-time student as defined by the school, for at least one day in at least five different months of the year. That means that a high school student who graduates in May or June will generally be considered a full-time student for the entire year even if they don’t go to college.

[claytonvon1]

Your clarification of what “support” entails is excellent information. You’ve answered all of my questions. Thank you very much!