Can I claim child as dependent? She is 19 and full time college student, has $12000 in w2's, lives at home and I support her.

[malloyhay]

Can I claim child as dependent?  She is 19 and full time college student, has $12000 in w2's, lives at home and I support her. When I entered her info she was due a $600 refund, when I selected that she would be claimed as a dependent on my return her refund dropped to $66. Why did it drop, and how can she get the full withheld amount? Thank you in advance! 

[xmasbaby0 · Accepted solution]

Yes, you can claim your 19 year old full-time colleges student as your dependent.  The reason she does not get a "full refund" is that when you claim a dependent, the dependent does not get the $4050 personal exemption--you get that on your own tax return.  The exemption lowers the amount of income that is taxable.  So anything over her $6300 standard deduction is taxable income for her.  The rule is  if she "can" be claimed she must say on her return that she can be claimed as a dependent on someone else's tax return.

[malloyhay]

One last question. Does my daughter have to file her own tax return? I understand following the rule "can be claimed..."

[xmasbaby0]

Yes, with the earnings you mentioned, she does need to file a tax return.

[malloyhay]

Thank you very much for your time and answers!