How to determine a dependent?

[dfisc]

My son is 27 years old and just graduated med school in May. He obtained a full time position in June. At that time he no longer was a dependent of ours but on his own. We paid his college tuition for spring 2019 semester and have the 1098-T.  We can't claim him as a dependent or is there a way to have a dependent for only 5 months? What do I do with the 1098-T if he is not a dependent of ours and he did not make the payment? During the time he was in school, we also covered the cost of his apartment.

[xmasbaby0]

Sorry, but you cannot claim him as a dependent for 2019, nor can you claim the education credit.  The education credit cannot be on your tax return if you are not able to claim him.  As for covering his rent, that is not deductible.

If the money spent for his education is a "gift" to him, he can claim the education credit on his own return.

[dfisc]

That's kind of what I figured. Interesting about the "gift". What would determine a "gift"?

[dfisc]

Thanks for this answer. How would it look like on each return if I were to determine the college fees a gift? From his side entering in taxes? Does he get hit on taxes? Do I?

[AnnetteB6]

According to the IRS instructions for Form 8863 Education Credits, "Qualified education expenses paid on behalf of the student by someone other than the student (such as a relative) are treated as paid by the student. Qualified education expenses paid (or treated as paid) by a student who is claimed as a dependent on your tax return are treated as paid by you."

This means that your son can use the education expenses paid by you on his behalf on his return to qualify and claim an education tax benefit, assuming all the qualifications are met. 

There is no need to do anything with regard to your taxes or his taxes to designate that tuition payment as a 'gift' and there is no tax implication for either of you.

@dfisc

[dfisc]

thank you