Does my 36 year old daughter who doesn't live with me qualify as my dependent?

[lhsmith951]

My 36 year old daughter hasn't worked in 2 years and doesn't live with me.  I pay all of her expenses; rent, utilities, phone, etc.  She receives Medicaid and food assistance and had a child last January.  Do they qualify as dependents not living with me on my tax return this year?

[SweetieJean]

Her Medicaid and food assistance could be impacted by your support, even if you do not claim her.

[Texas Roger · Accepted solution]

There are two types of dependents--qualifying child and qualifying relative. You can't claim either of them as qualifying child dependents because your daughter is too old and her child didn't live with you. You may be able to claim both of them as qualifying relative dependents. Here are the tests:

1. The person cannot be your qualifying child or the qualifying child of any other taxpayer. A child is not the qualifying child of any other taxpayer if the child's parent (or any other person for whom the child is defined as a qualifying child) is not required to file an income tax return or files an income tax return only to get a refund on income tax withheld.

2. The person either (a) must be related to you or (b) must live with you all year as a member of your household. 

3. The person's gross  taxable income for the year must be less than $4,050 in 2016.

4. You must provide more than half of the person's total support for the year.

5. The person must be a U.S. citizen, U.S. resident alien, U.S. national, or a resident of Canada or Mexico.