Child under 19

[oceanlovin'ea]

The old rule was if child was under 19, did not provide over half of their own support, not filing joint return and lived with parents the parents could claim the child as a dependent.

So if a child is 18 at the end of 2018, has finished school, works but doesn't provide over half of their support and still live with parents technically the parents could still claim the child. But since personal exemptions will be gone in 2018, it really doesn't benefit the parents to claim the child. Am I looking at this the right way?

Wouldn't the family be better off for the parents to file a MFJ return with no dependents and the child who is employed to file his own tax return and claim his standard deduction? He will probably earn around $8000 to $10,000 during the year.

Linda F

[New York Enrolled Agent]

Wouldn't the family be better off for the parents to file a MFJ return with no dependents and the child who is employed to file his own tax return and claim his standard deduction? He will probably earn around $8000 to $10,000 during the year.

It is not a question of who would "be better off". The status as a dependent is a matter of fact.

If the son is a dependent, then he IS a dependent. If your analysis determines he is a dependent, then you should act accordingly. There are many times taxpayers would "be better off" if preparers ignored the facts.

[kathyc2]

Like NY said you need to look at the facts as to who qualifies for the exemption.

But, if the kid earns less than 12K for 2018 they will not have any tax liability. However, IF the parent qualifies to claim as a dependent they will receive the other dependent $500 tax credit.