Dependent who is student over 25

[oceanlovin'ea]

Client's son turned 25 in August 2012. He graduated from medical school in May so was student for 5 months of year. Now he is doing his residency. I guess residency is considered on the job training.
I was checking to see why refund was lower this year and it is because the software dropped him as a dependent.
I will have to do more checking. But I don't think residents get paid. So his parents may be paying for his apartment and expenses. (or his girlfriend might be paying for the apartment). hmmmmm. guess I need to ask some more questions before I go any further.

But if someone has an opinion let me know.

Linda, EA

[ATSMAN]

Client's son turned 25 in August 2012. He graduated from medical school in May so was student for 5 months of year. Now he is doing his residency. I guess residency is considered on the job training.
I was checking to see why refund was lower this year and it is because the software dropped him as a dependent.
I will have to do more checking. But I don't think residents get paid. So his parents may be paying for his apartment and expenses. (or his girlfriend might be paying for the apartment). hmmmmm. guess I need to ask some more questions before I go any further.

But if someone has an opinion let me know.

Linda, EA

Some hospitals pay residents a small stipend. But that barely pays for fast food!

So if the parents are essentially supporting this child (as per IRS rules), should be able to claim as a dependent. Obviously if the GF is footing a lot of the bills that may be an issue.

[New York Enrolled Agent]

Client's son turned 25 in August 2012. He graduated from medical school in May so was student for 5 months of year. Now he is doing his residency. I guess residency is considered on the job training.
I was checking to see why refund was lower this year and it is because the software dropped him as a dependent.
I will have to do more checking. But I don't think residents get paid.

It depends on the hospital and the year of residency but residents probably earn in the $30K - $50K range on average. Obviously some are lower, some are higher. The son turned 25 - thus he is no longer under the q.c. rules. It seems the gross income test for q.r. would be the big factor.

Look at the Johns Hopkins website - 4th year residents are paid somewhere around $55K.

[oceanlovin'ea]

ok. Thanks for the heads up. He is just starting his residency so he might be a lower end if he gets anything.

I will check with his mom this evening. or as soon as I can get in touch with her.

Linda, EA

[Gary]

Resident

My son is a physician, and he was paid when he was a Resident.

[JON]

Gross income

exception is gone so if you make what more than the depency deduction you are on your own.