Why cant I claim 20 yr old daughter when she resides in my home and I pay more that half her expenses, (she is not a student and makes more than $5000)

[michelereed]

need to claim 20 year old daughter who resides in my home and I pay for more than half of her expenses, even though she earns more than $5000 a year. Turbo tax only asks did she make over $4050? if yes they say you cant claim her

[Hal_Al · Accepted solution]

She is over age 18, not a student and makes more than $4150; so she cannot be your dependent.

The more than 50% support rule ("I pay more that half her expenses"), alone,  does not qualify her.

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, a relationship test and a residence test. Only a QC qualifies a taxpayer for the Earned Income Credit and the Child Tax Credit.

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. 

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 $4150 ($4,050 in 2016-17)

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