I got custody of my little sister and she has taxes that need to be filed. She is my dependent now but for 8 months of the year she was in the states custody. How do I file her? Under me?

[ThomasM125]

She would have to live with you for six months to qualify as your dependent. So you should not list her on your tax return.

She would file a return under her name if she is required to file a tax return or wants to file to get a refund.

[amberleigh0420]

Okay, but she wasn’t independent. Next year I can claim her, but wouldn’t it be odd if one year she is Independent and the next she isn’t? 

[amberleigh0420]

Also she  just turned 17. Still has a whole year of school left and is staying with me till she is out of college 

[ThomasM125]

The IRS doesn't keep track of where people show up on tax returns from year to year. Each year is different, as circumstances change, so you can change filing status and dependent status from year to year and it won't raise any red flags.

As long as you furnish over half of her support and she is a full-time student, it won't matter how much income she earns until she is 24, if you support her and she meets the other dependent requirements, then you can claim her as your dependent.

Also, if she qualifies as your dependent and goes to college, you may qualify for an education credit on your tax return.