Dependent Question

[S T]

Taxpayer (parent) has a 21 year old son - with earnings from Natl Guard of $ 10K, and received some Education Assistance through GI Bill.

I understand that GI Bill assistance for the Tuition will offset any possible Education Credits - however, Taxpayer (parent) provided support (living expenses) for son of approxmately $21,000 or more for 2012.

My question is can the Taxpayer (parent) claim the Son as a dependent, and do we have to include the amount received from the GI Bill for education in the support calculation?

Thanks

Sandy

[appelman]

Is he a full-time student?

If not, his income disqualifies him. If he is a full-time student, the requirement is that he does not pay for more than half of his own support. I would consider a scholarship grant to be support paid by others, though I would like to see other opinions on this.

[Kram BergGold]

Scholarships are ignored for support

I don't know where I found this. Basically you reduce tuition or room and board by the scholarship amount thus negating both and then figure support from that point.
Back to the question unless the 21 year old was a full time student in 5 months of the year he can't be a dependent as he had income greater than $3,800.

[S T]

I have Taxpayer retrieving the transcripts to see if we can meet the 5 month Full Time, one Education facility deems less than 12 units a semester as full time, while the other Ed facility requires 12 units for full time. I don't have the answer on this part yet,

Thanks for the Scholarship (GI Bill) info as not being counted as support.

Sandy

[ddoshan]

Whether or not the GI bill would basically disallow any education credit depends on how he is receiving the money. If paid directly to the school or if paid to him as part of a living allowance while attending school. Not all GI bill payments are the same for every eligible individual. For example, if he receives say 500 a month paid directly to him for living allowance or whatever while attending school, these amounts would not have to be considered in reducing any education expenses. If amounts are paid directly to the school for tuition etc. then they would reduce any eligible education expenses.
Son earned 10K plus his GI bill which may or may not have to be considered... I am really suspect that he did not contribute over 50% of his own support. Unless tuition was very high and the parents paid a lot of it.

[S T]

Nothing recevied as Living Allowance from GI Bill - all GI amounts received was for Tuition in 2012 - therefore not likely for any Ed Credits - Living Expenses from GI Bill start in 2013.

Parents contributed to Living Expenses which exceed the $ 10K Son Earned.

Now the question whether Full Time Student for at least 5 months during 2012?

Thanks

Sandy