TurboTax is telling me my 20 year-old daughter (turned 20 in August 2023) is a dependent despite the IRS tax form telling me she is not. She is living at home fulltime (lived with us the whole 2023 year); single, not disabled, we pay most of her expenses, she made less than $4700 in 2023, and she is not a fulltime student. According to all of the IRS rules, because she is older than 19 and is not a fulltime student, she fails to qualify as a dependent, but TurboTax keeps telling us she is a dependent. We will be filing her as an independent for 2023, as she receives Medicaid for herself and her child. Is this an error in TurboTax? How can this be corrected to show her as independent?
She meets the criteria to be claimed as a qualified relative dependent because she had less than $4700 (per what you said) of income and you provided over half of her support.
WHO CAN I CLAIM AS A DEPENDENT?
You can claim a child, relative, friend, or fiancé (etc.) as a dependent on your 2023 taxes as long as they meet the following requirements:
Qualifying child
Qualifying relative
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.
Thank you for your response! However, do we need to claim her as a qualified relative dependent? Since she is a fulltime mom at the moment and receiving Medicaid benefits for herself and her 1 yr. old child, Medicaid advised us that she must file as an independent to qualify for the benefits. So, she would either file as an independent or not file at all, per the IRS rules. We want her to continue to receive the Medicaid benefits for herself and her child.