Is it legal to change my 2022 return and not claim a dependent so they can be better eligible for student aid?

[fanfare]

Your or your student's aid application does not depend on the dependents you list on your tax return.

@docmatter58 

[docmatter58]

Really?  That surprises me.  I assumed my student would have better options for student aid if they weren't claimed by me on my return. 

Thank you for the info.

[DoninGA]

You are not legally obligated claim anyone as a dependent on your tax return.

However, if they are eligible to be claimed as a dependent, the student/child must indicate they Can be claimed as a dependent when that question is asked of them.

[docmatter58]

So if I don't claim them (and no one else can), then they can't be claimed as a dependent? 

Just want to make sure I understand the legality of it all.

[Opus 17]

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@docmatter58 wrote:

Really?  That surprises me.  I assumed my student would have better options for student aid if they weren't claimed by me on my return. 

Thank you for the info.

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You don't have to claim a person who qualifies as your dependent if you don't want to.

However, any person who qualifies to be claimed as a dependent (such as your college-age child) must answer "yes, I can be claimed as a dependent", if they can be claimed, even if they don't want to be claimed, and even if the person who could claim them decides not to.  Failing to answer "yes" to that question if they qualify to be claimed might impact certain tax benefits and could be seen as improper by the IRS and financial aid authorities. 

It is not always clear-cut that a college student qualifies to be claimed as a dependent, depending on their living situation, tuition, loans, jobs, and other sources of support.  (A college student is often a dependent of their parents, but not automatically.)  We can talk about that if you have further questions.  

[NCperson]

@docmatter58 you ALWAYS have the option to claim or not claim a dependent.  THe IRS doesn't care.  The IRS is better off if you don't claim a dependent, because they don't have to pay the credit you may be eligible for.

HOWEVER, the dependent is asked CAN they be claimed, not ARE THEY claimed? see the difference?  Whether you claim the dependent or not, the dependent's answer is always the same when answering the question "CAN you be claimed"