I am trying to figure out the tax benefit I receive for my dependent 23 yr old son, a part time student with a work study income of $4000/yr.

[kbeasley711]

I need to know because I will pay around a $1000 penalty because I can no longer afford his health ins premium So for 2017 should I drop him as a dependent when I house feed and pay his car expenses still

[TaxGuyBill · Accepted solution]

I assume that you are talking about your 2016 tax return (filed early in 2017)?  If your son's income is $4050 or more, you don't have a choice.  You can NOT claim a PART-time student that has $4050 or more of income.

With the VERY little information you gave us, there is no way to tell you for sure.  Your Federal tax bracket, State tax bracket, and what type of college credits that you may qualify for are all significant factors.  There is a good chance it would still benefit you to claim him (if he qualifies), but it is difficult to say for sure.

If he does qualify as your dependent, just try your tax return both ways and see what gives the best result.  Once with him, and one without him (it is easier to use the CD/downloaded version of TurboTax, rather than the Online version).

However, be aware that if you CAN claim him as a dependent, he can NOT claim his own exemption, and any benefit for college expenses could be eliminated.