What are the rules about claiming dependents on a federal tax return?

Answers:1   |   LastUpdateAt:2012-10-01 09:06:03  

Asked at 2012-08-05 16:28:03
I was surprised to learn that a friend claims her 22-year-old daughter as a dependent. The daughter works, pays her own way (car payment, auto and health insurance) but lives at home. The friend is upset that, as a result of claiming the daughter as a dependent, the daughter is not eligible for financial aid based on her mother's income.

I was under the impression that you can only claim kids over the age of 18 if they are in school. Obviously, this is not correct.

So what are the rules?
Answer1BreeAnswered at 2012-10-01 09:06:03
There are two sets of rules: qualifying child and qualifying relative MedlinePlus . MedlinePlus Qualifying Child Under the government you can claim a child who is under age 19 or are younger than 24 years and full-time student for any part of five months to be in their home for more than half the year ( excluding temporary absences such as for school ) and child fees not provide more than half of their own support. MedlinePlus MedlinePlus Under the classification rule concerning no age limits , however , the child must have gross income (excluding only non-taxable Social Security ) for less than $ 3,650 and you must provide more than half of child support . MedlinePlus MedlinePlus In the scenario you describe , she can claim the child if the child was a full-time student for any part of at least five months in 2009 . The child's income is a factor in testing support however so does the value of the house that the mother provides . They run the numbers on the support worksheet on page 20 of Pub 501 of the IRS to see if the child provides more than half of their own support. If it does, the mother can not claim it. MedlinePlus MedlinePlus Who says who in their tax returns has nothing to do with the right to receive financial aid for college . Under financial aid rules that the child is a dependent and the mother's income is a factor if the child is under age 24 , not married and not in full-time military active duty , or not enrolled in a degree or higher level of the program or actually no stranger to the parents . That would be the case even if the child lived on their own and pay their expenses.
Related Questions
  • Answer This Question:What are the rules about claiming dependents on a federal tax return?