Question about claiming daughter as Dependent

[sun244]

Friends,

My daughter turned 19 in Nov 2021.  She filed her own taxes for 2020. She is working 2 part time jobs and a full time student (first year Under Grad). I am using Desktop ver of TT and I am unable to categorize her as "Credit for Other Dependents" which was done last year by my tax preparator. I have following questions:

1. Can I claim her as Dependent if she chooses to do so and not file her taxes? Since she filed her taxes last year. 

2. What are the advantages and disadvantages of both cases (filing on her own versus Dependent in parents returns)

3. We (Parents) provide all her support (College Tuition, Dorm fees ...etc...). One of the Questions in TT asks ""If your child was away at college, count the number of months away as having lived with you" which makes her living whole year with me which in turn makes her Dependent.  What is the way to exclude her as Dependent in TT and categorize her "Credit for Other Dependents"

Thank You

[SweetieJean]

You do not get to choose.  The IRS rules must be followed.  Most likely, she is still your (under age 24) dependent, and she must indicate that on her own return.

[sun244]

I agree, she is doing it in her return. But how do I declare her as "Credit for Other Opponents" in Turbotax?

Thanks

[DoninGA]

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@sun244 wrote:

I agree, she is doing it in her return. But how do I declare her as "Credit for Other Opponents" in Turbotax?

Thanks

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You mean credit for Other Dependents.  You add her as your dependent.

You claim her as your child.  She lived in your home for the entire year.  She did not provide over one-half of her own support.  There was no other relative in the household who also provided her support.  She was a full time student.  

You will receive the Other Dependent tax credit of $500

[xmasbaby0]

You enter your daughter's information as a dependent in My Info.   At age 19 if she is a full-time student she can be claimed as your qualifying child dependent.  The $500 Credit for Other Dependents will show up on line 19 of your Form 1040.   

If you are claiming her that means you are the one who can get the education credit on your tax return.

Your daughter can file a tax return to seek  a refund of tax withheld from her paychecks but she must say on her return that she can be claimed as someone else's dependent.  if she filed before you and and did not say that, your e-file is going to be rejected.   If that happens you need to print, sign and mail your own tax return.

She will have to amend her return to change the way she answered the question about whether she can be claimed.  if she receives the $1400 recovery rebate credit she will have to pay it back

For your daughter:

https://ttlc.intuit.com/community/dependents/help/when-do-i-have-to-answer-yes-to-being-claimed-as-a...

WHO CAN I CLAIM AS A DEPENDENT?

You can claim a child, relative, friend, or fiancé (etc.) as a dependent on your 2021 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 $4,300 in 2021.
• 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.

[sun244]

Thanks for all the replies.

Tax preparer made me claim her as "Credit for Other Dependents" last year and my daughter filed her return that no one else is claiming her as Dependent. Can she allow me to claim her as dependent this year? The fact that she is switching from filing on her own to asking me to claim her as Dependent, will it raise any Audit flags?

Regards

[DoninGA]

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@sun244 wrote:

Thanks for all the replies.

Tax preparer made me claim her as "Credit for Other Dependents" last year and my daughter filed her return that no one else is claiming her as Dependent. Can she allow me to claim her as dependent this year? The fact that she is switching from filing on her own to asking me to claim her as Dependent, will it raise any Audit flags?

Regards

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No, that is not an issue as it happens all the time.  Just make sure if she is going to file a return that she indicates on her tax return that she can be claimed as a dependent.

[sun244]

Thank you. Based on claiming her as Dependent, do I need to modify last year return?

[JohnW152]

If your daughter filed last year saying no one could claim her as a dependent, and you amend your own return from last year claiming her as a dependent, that’ll raise a red flag.

That’s not meant to discourage you from amending, if that’s actually the fact scenario, but your daughter would also need to amend, saying she couldn’t be claimed on someone else’s return.

I believe I’m understanding your question but, if not, please advise.

[sun244]

There are two questions, based on my Daughter filing her returns (with no one can claim her as Dependent) and me filing with out her as Dependent but "Credit for other dependents" checked.  Please note that this is for last year. 

1. I have to claim her as Dependent this year since I am providing more than 50% of her expenses. Under these circumstances, can I leave the last year returns as it is?

2. Follow-up question, will my daughter's status change from "Non-Dependent" to "Dependent" raise any red flags?

Please note that my daughter is fully into this and I am doing all this with her concurrence / approval

Thanks

[PattiF]

Yes, you can leave the returns from last year as they are.

The change in status from Non-Dependent to Dependent will not raise a red flag. You will be fine if you file with your daughter as a dependent for 2021.