Based on the
information given, because he is under the age of 24 and in college full time, regardless
of how much he makes, as long as he did not provide for more than 50% of his
support then you still qualify to claim him on your return. Remember, this is based on his ability to
support himself, not on you providing more than half of his support. If he provided for more than 50% of his own support, then you would not qualify. Do not include grant, scholarships and
student loan to determine if he provided more than half his support. Please review the rules in IRS Publication 970, tax
benefits for education.
Summarized, it
states that;
If the student:
Is under the age of
24 on Dec 31 of the tax year and:
Is enrolled in an
undergraduate program at an accredited institution and:
Is enrolled as at
least a half time student for one academic semester that begins during the tax
year, (each institution has their own definition of a half time student) and:
the STUDENT did NOT
provide more that 50% of the STUDENT’S
support (scholarships/grants received by the student do not count as the student providing their own
support)
Then:
The parents will
claim the student as a dependent on the parent's tax return and:
The parents will
claim all scholarships, grants, tuition payments, and the student's 1098-T on
the parent's tax return and:
The parents will
claim all educational tax credits that qualify.
If the parent is
claiming the student as a dependent, the student can still file their own tax
return to try and receive the taxes they paid for that year. Whenever they are completing their taxes, the
student must select the option that states; 'I can be claimed on someone else's
return' (see screen shot from Turbo Tax online). Remember, however, that who claims the
student as a dependent will be the one who claim qualified education expenses
for education or credit.
