Can I claim my daughter (24 years old) as a dependent, had a scholarship at a university and she also worked there and earned $5000.00 for 2016 (shown on her W-2)?

[jreyes765]

She also got form 1097-T, box 5 shows $10,000, box 2 shows $21,000, and boxes 7, 8, & 9 are marked with "X".

[Hal_Al · Accepted solution]

No. Being over age 23 and earning more than $4050 are the reasons why. It also questionable whether the support test is met.

There are two types of dependents, "Qualifying Children"(QC) and standard ("Qualifying Relative" in IRS parlance even though they don't have to actually be related). There is no income limit for a QC but there is an age test (under 19 or under 24 for a full time student).

 A person can still be a Qualifying relative dependent, if not a Qualifying Child, if he meets the 6 tests for claiming a dependent:

1. Closely Related OR live with the taxpayer ALL year

2. His/her gross taxable income for the year must be less than $4,050 (2016)

3. The taxpayer must have provided more than 1/2 his support

In either case:

4. He must be a US citizen or resident of the US, Canada or Mexico

5. He must not file a joint return with his spouse or be claiming a dependent of his own

6. He must not be the qualifying child of another taxpayer