24 year old dependent daughter; full time student. Never filed individually before. This year she made over $6300 but less than $10350. Must she file individually?

[rickdaley]

And if she must file individually, what information do we need to include in our tax form when claiming her as a dependent.?

[Hal_Al · Accepted solution]

Your question is academic.

Because she is over age 23 and made more than $4050; she can NOT be your dependent. The full time student rule extends the ability to claim a child from age 18 to age 23. But at 24, the income test rule applies. See full rules below.

Since she will be claiming herself, the $10,350 limit applies and she is not required to file She may file if she needs to get back any withholding and may qualify for a tuition credit, if she is an undergrad.

DEPENDENT RULES

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.

 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. Scholarships are considered third party support and not as support provided by the student.

3. He lived with the parent (including temporary absences such as away at school) for more than half the year

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

[rickdaley]

Sorry that I made a mistake.  She is actually 22 years old.  How does that change the answer ?
thanks!

[Hal_Al]

Yes, she must file a tax return, because she has over $6300 of income.
Note that the difference between $10,350 and 6300 is $4050. Because you are claiming her $4050 personal exemption (deduction), on your return, because she is your dependent, she does not get to claim it on her return. She still gets a standard deduction, so any income over $6300 will be taxed and she must file to pay that tax

EDIT.  Note: for tax years 2018 and beyond, the $4050 exemption has been eliminated.  The Standard deduction has been increased to $12,000. So, a student-dependent with under $12,000 of earned income would not be required to file

[rickdaley]

Thanks!

[hwagner1195]

Hi, I am a 24 year old college student that lives at home with my parents. Can they claim me as a dependent or do I claim myself?

[KrisD15]

That depends, since you were not under the age of 24 at the end of the tax year, you would not be claimed as a "Qualifying Child", HOWEVER, you might be your parent's "Qualifying Relative" in which case, YES, they would claim you. 

To be their qualifying relative, the following requirements must be met: 

1. You can't be ... the qualifying child of any other taxpayer.
2. You either (a) must be related to them in one of the ways listed under Relatives who don't have to live with you , or (b) must live with you all year as a member of your household.
3. Your gross income for the year must be less than... $4,200 for tax year 2019.
4. Your parents must provide more than half of your total support for the year. 

(There are exceptions for temporary absences, such as school or the military.)

If you do not fulfill the requirements, you would claim yourself on your tax return. 

Even if you are a dependent and your parents claim you, you may still need to file your own tax return(s). 

@hwagner1195

CLICK HERE for more information about dependents

[Hal_Al]

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 limit, student status, a relationship test and residence test. Only a QC qualifies a taxpayer for the Earned Income Credit and the Child Tax Credit. They are interrelated but the rules are different for each.