Confusing dependant status

[Bill Chase]

I have a client who has a son who is in his third year of college as a full time student. The taxpayer obviously get to claim him and all of his american opportunity credits. This is where my problem starts.
The student got married in october of 2019 and he had only 175 of income. His wife had 686 of income but had some extra scholarship income of approximately 10000. As a married couple they have
no tax liability. I believe looking at all the information I can find, his parents can still claim him on their tax return and claim the education credits based on the fact that their married son has no tax liability.
This will generate an additional 3000 refund for the parents. Thirty years of individual tax prep and I have no answers. Any info would be greatly appreciated

[Maude Lebowski]

Check out the dependency tests in The Tax Book?

[ttbtaxes]

How old is the son?

[TaxGuyBill]

I agree with your assessment. It is an unusual situation, but from what you have described, the parents can claim the child.

Just be sure to indicate on the joint return that the parents are claiming the son. However, if I remember correctly, the IRS e-file computers aren't going to like it, and one of the tax returns may need to be paper-filed.

[Lion]

If the "kids" haven't filed yet, the computers MIGHT be happier with them as MFS. But, I agree with Bill that the parents can claim the child. Try e-filing, and if a rejection, attach that to the paper return and mail. Warn the parents they might have to paper file.