Maybe.
A child of a taxpayer can still be a “Qualifying Child” (QC) dependent, regardless of his/her income, if:
1. He is under age 19, or under 24
if a full time student for at least 5 months of the year, or is totally & permanently
disabled
2. He did not provide more than 1/2 his own support. Welfare** is considered third party support and not as support provided by the child.
3. He lived with the parent
(including temporary absences such as away at school) for more than half
the year
So, it doesn't matter how much he earned. What matters is how much he spent
on support. Money he put into savings does not count as support he spent on him
self.
The support value of the home, provided by the parent, is the fair market
rental value of the home plus utilities & other expenses divided by the
number of occupants. The
IRS has a worksheet that can be used to help with the support calculation. See:
http://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf
**Supplemental Security Income (SSI) from the Social Security Administration (SSA) is considered welfare. On the other hand, Social security disability income (SSDI) is consider as his money, for the support test. If he receives a form SSA-1099, he has SSDI, not SSI
