Qualifying child vs dependent 2022

[lameri]

What is best for tax purposes, to have a child as qualifying or as dependent?

What are the rules for a qualifying child in 2022?

Is a child who was 18 by the end of the year and lived with parent (head of household) most of the year and is not claimed by anyone as a dependent considered a qualifying child?

I read https://www.irs.gov/credits-deductions/individuals/child-tax-credit but the "generally" makes things not clear. So generally the child could not be 18, but not always?

Thanks!

[xmasbaby0]

If your child is a qualifying child UNDER the age of 17, you can get the child tax credit.  If your dependent child is older than 16, you get the $500 credit for other dependents.   But.....if your child is a full-time student under the age of 24, you can still get earned income credit for claiming them--you would not get EIC if your child is "just" a qualifying relative.   

And...18 is not the critical age.   

WHO CAN I CLAIM AS A DEPENDENT?

You can claim a child, relative, friend, or fiancé (etc.) as a dependent on your 2022 taxes as long as they meet the following requirements:

Qualifying child

• They're related to you.
• They aren't claimed as a dependent by someone else.
• They're a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
• They aren’t filing a joint return with their spouse.
• They're under the age of 19 (or 24 for full-time students).
• No age limit for permanently and totally disabled children.
• They lived with you for more than half the year (exceptions apply).
• They didn't provide more than half of their own support for the year.

Qualifying relative

• They don't have to be related to you (despite the name).
• They aren't claimed as a dependent by someone else.
• They're a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
• They aren’t filing a joint return with their spouse.
• They lived with you the entire year (exceptions apply).
• They made less than $4,400 in 2022.
• You provided more than half of their financial support.

When you add someone as a dependent, we'll ask a series of questions to make sure you can claim them. There may be other tax benefits you can get when you claim a dependent.

Related Information:

• What does "financially support another person" mean?
• What is a "qualifying person" for Head of Household?
• Does a dependent for 2022 have to live with me?
• Do I qualify for Head of Household in 2022?
• Can I claim myself or my spouse as a dependent?

IRS interview to help determine who can be claimed:

https://www.irs.gov/help/ita/who-can-i-claim-as-a-dependent

https://ttlc.intuit.com/questions/3113432-who-can-i-claim-as-my-dependent  

[xmasbaby0]

Look at your 2022 Form 1040 to see the child-related credits you received

PREVIEW 1040

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

Child Tax Credit line 19

Credit for Other Dependents line 19

Earned Income Credit line 27

Additional Child Tax Credit line 28

Child and Dependent Care Credit line 31 (from line 2 of Schedule 3)

https://ttlc.intuit.com/questions/1900923-what-is-the-child-tax-credit

https://www.irs.gov/help/ita/does-my-childdependent-qualify-for-the-child-tax-credit-or-the-credit-f...

https://ttlc.intuit.com/questions/1900643-what-is-the-child-and-dependent-care-credit

https://ttlc.intuit.com/questions/1899157-what-are-the-qualifications-for-the-earned-income-credit-e...

https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant

https://ttlc.intuit.com/questions/4499708-what-is-the-500-credit-for-other-dependents-family-tax-cre...

[xmasbaby0]

After re-reading your question---

".....not claimed by anyone..."

I suspect you are confused about filing as Head of Household.   You must understand that unless you claim a blood-related person as a dependent, you cannot file as HOH.   Whether the person is a qualified child or qualified relative does not make the difference.   You must claim a dependent.   Merely having someone who lives with you is not enough.   If you are wanting to file as HOH you must have a qualified dependent--whether they are a  child or not.

Am I Head of Household?

https://ttlc.intuit.com/questions/1894553-do-i-qualify-for-head-of-household

https://ttlc.intuit.com/questions/2900097-what-is-a-qualifying-person-for-head-of-household

If you qualify as Head of Household, when you enter your marital status (single or married filing separately) into MyInfo, and then enter your qualifying dependent, TurboTax will offer HOH as your filing status.

[lameri]

@xmasbaby0  Thanks for writing.

The parent is a head of household, so the question is just if her child would be a dependent or a qualifying child.

I'm not sure I understand: "you would not get EIC if your child is "just" a qualifying relative."

Also, regarding the 1040, well... I'm trying to figure out what goes there (the report is not finalized).

[TomD8]

"Qualifying child" and "dependent" are both strictly defined by the IRS.  It's not a matter of choosing one vs the other.  Perhaps this IRS fact sheet will help explain:

https://www.irs.gov/pub/irs-news/fs-05-07.pdf

[xmasbaby0]

@lameri Not sure what you think the difference is between a qualifying child and a dependent.   Please re-read the criteria for claiming a dependent that was provided to you earlier.  There are two types of dependents---qualifying child and qualifying relative.      There is a difference between a "qualifying child" and a "qualifying relative"----but they are both types of dependents.  What are you trying to do?   Are you trying to file as Head of Household?   If so, you must have a qualified dependent----a blood-related relative for whom you provide at least half of their support.    That qualified dependent can be a qualifying child or a qualifying relative.

[NCperson]

@lameri  a Dependent is either a Qualifying Child (QC) or a Qualifying Relative (QR).  QC and QR are subsets of a Dependent.  the question "is this person a dependent or a QC" is illogical given the IRS definitions. 

[NCperson]

@xmasbaby0 -

<< If you are wanting to file as HOH you must have a qualified dependent--whether they are a  child or not.>>

but in some circumstances it MUST be a child

HOH has separate rules depending on whether the taxpayer is unmarried or is a married individual who is 'considered unmarried'. Specific to the issue of a Qualifying Person (and not worrying about the other rules that differentiate the two flavors of HOH):

For the person who is unmarried, the Qualifying Person can be a bio, step or foster child OR Closely Related to the taxpayer.  (while aunt and uncles, nieces and nephews are "closely related", cousins are not "closely related").  The taxpayer has to 'have' a Qualifying person but is not required to claim that person.

For the person who is "considered unmarried" in IRS parlance  (meaning the spouses lived apart for at least the last 6 months of the year yet are still legally married) , the dependent can only be a bio, step or foster child under the age of 19 (or a student under 24 or disabled) and the parent must claim the child.  No other relative qualifies under these more narrow requirements for HOH

it is quite confusing. 

[xmasbaby0]

@NCperson Yes---thanks..   this is why I provided the link to who can be a qualifying person for HOH.   It would help us all if we knew exactly what the OP @lameri is really trying to do, so we could zero in and give them correct  and pertinent information.   It is hard to tell if they want to file as HOH, claim a dependent, not claim them....   We do not know who the potential qualifying person is.......      ????

[NCperson]

@xmasbaby0 agreed.  The definitions are confusing which causes confusing questions from OPs.😀

[lameri]

@TomD8 According to that link, this would be a qualifying child (being under 19), but it seems that was the law other years but not in 2022, which requires the child to be under 18.

Like I said, the parent is a head of household, but if the child is "just a dependent," the deduction is $244 while if he is also a qualifying child, it is $2000.

Thanks for your help.

[NCperson]

@lameri -  A qualifying child is a dependent

When considering tax credits: 

A qualifying child under the age of 17 in 2022 makes the taxpayer eligible for a child tax credit of up to $2000.  A qualifying child over the age of 16 makes the taxpayer eligible for an "other dependent' credit of up to $500. 

When considering filing status: 

A Qualifying Child - whether claimed or not  - allows a person that is unmarried to file HOH (as long as other requirements are met)

A Qualifying Child that is claimed on the tax return and is the bio, step or foster child of the taxpayer permits a married parent who has been separate from their spouse for at least the last 6 months of the year (among other requirements) and therefore "considered unmarried" in IRS parlance to file HOH.   

it is quite confusing, but best to separate the consideration of filing status and the consideration of tax credits. 

[lameri]

I now see where things differ in terms of getting the credit:

2021's Schedule 8812 read this:

While 2022's same schedule, line 4a replaces "under age 18" with "under age 17"

[xmasbaby0]

@lameri

The 2021 child-related credits were very generous.  Lots of people are being taken by surprise this year when they find out the credits for 2022 are lower than they were last year.

The tax laws changed for child-related credits and are much less generous for 2022.

Make sure you have entered your child as a dependent in My Info, and that you have entered the child's Social Security number.    Careful— do not say that your child’s SSN is not valid for employment.  If your child was born in 2022 make sure you said he lived with you the whole year.  There is an oddly worded question that asks if the child paid over half their own support.  Say NO to that question.

Have you entered income from working in 2022?  If not,  you will not receive an income tax refund based on having dependent children.

The rules for getting the child tax credit on a 2021 tax return and now on a 2022 return are very different.  For 2021 you could get $3600 for a child under 6 or $3000 for a child between 6 and 17 even if you had no income/did not work.   That is NOT the way it will work for your 2022 tax return.  The “old” rules are back. 

  The maximum amount of the child tax credit is now $2000 per child; the refundable “additional child tax credit” amount is $1500.   In order to get that credit, you have to have income from working.  The credit is calculated based on the amount you earned above $2500 multiplied by 15%, up to the full $1500 per child. If the amount you earned was too low, you will not get the full $1500.

 If your child is older than 16 at the end of 2022, you do not get the CTC.  But you may still get the non-refundable $500 credit for other dependents instead.

https://ttlc.intuit.com/questions/1900923-what-is-the-child-tax-credit

https://www.irs.gov/help/ita/does-my-childdependent-qualify-for-the-child-tax-credit-or-the-credit-f...