College student claim himself, unique scenario...

[nwtaxlady]

College Student received Soc Sec until age 18 and Mom (long time client) had put his SS money in savings and also in college 529 plans. Now child is in college and worked part-time W-2 wages is $3300. Has a small Edward Jones account and also savings account at bank. His Tuition & his Room & Board is paid for by his 529 (with his own money) that Mom had saved with his Soc Sec thru the years.

Question....can college student claim himself? Or Mom? His EARNED income is only $3300.

My first thought is yes he claims himself. However, my software diagnostic says something to the fact that if he is claiming himself that he is supporting himself more than 50% with his earned income. So that's why I am questioning this.

Also, his AGI is less than $3900.

So does he claim himself or does Mom?

[BP.]

Tuition & his Room & Board is paid for by his 529 (with his own money)

Be better for mom to claim if he doesn't provide over half his support. You mention the 529 money is his. Is it his or mom's?

Maybe mom is actually the account owner and he is listed as the student beneficiary. So maybe it doesn't have to be treated as support provided by the student.

[Burke]

See TTB 12-3, AOC rules. TP cannot receive refundable portion of AOC if he is a full-time student over age 18 and under 24, with earned income of less than one-half of his support.
This appears to be the case here. Since his AGI is less than $3,900 there is no point in claiming himself, because he has no tax liability anyway, and the non-refundable AOC is not worth putting on the return because there is no tax to get a credit against. Assuming Mother is alive and filing a return, she can claim and get the credit.

[ChEAr$]

See TTB 12-3, AOC rules. TP cannot receive refundable portion of AOC if he is a full-time student over age 18 and under 24, with earned income of less than one-half of his support.
This appears to be the case here. Since his AGI is less than $3,900 there is no point in claiming himself, because he has no tax liability anyway, and the non-refundable AOC is not worth putting on the return because there is no tax to get a credit against. Assuming Mother is alive and filing a return, she can claim and get the credit.

Variation of the above before me even now. Facts are same as above except that mother is resident of Puerto Rico and indeed
a Puerto Rican and never been to this country. She files return in PR which is different than our own beloved 1040.

This studen thas a W2 of about 4,400$, and a 1098T for amounts billed about twice the scholarship amount. Therefore until I receive a transcript I an only thing that the difference was spent on room and board.

[Gary2]

See TTB 12-3, AOC rules. TP cannot receive refundable portion of AOC if he is a full-time student over age 18 and under 24, with earned income of less than one-half of his support.
This appears to be the case here. Since his AGI is less than $3,900 there is no point in claiming himself, because he has no tax liability anyway, and the non-refundable AOC is not worth putting on the return because there is no tax to get a credit against. Assuming Mother is alive and filing a return, she can claim and get the credit.

I would disagree with the mother claiming him. Even though there's no value to him for claiming himself, he is, nevertheless, supporting himself (largely with his 529 funds), and thus the mother cannot claim him.

[Burke]

She or he should complete the support worksheet on TTB 16-9. It is possible the household expenses (he is considered a resident of the home temporarily away) would turn the tide, especially if he is an only child.

[ttbtaxes]

Based on what we've been presented, it sounds like the mother is likely paying for his health insurance, clothes, entertainment, food while home, housing while home, and all other things that go with living. I would be very surprised if the kid provided more than half his own support.

[Gary2]

Based on what we've been presented, it sounds like the mother is likely paying for his health insurance, clothes, entertainment, food while home, housing while home, and all other things that go with living. I would be very surprised if the kid provided more than half his own support.

We don't know whether it's a state college or Harvard. But eight or nine months of college room & board can easily exceed three to four months plus vacations at home. Throw in tuition, and I wouldn't be surprised if he's paying way more than half his own support.

But as Burke said, the support worksheet is the answer.