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    #1

    Dependent Question

    Taxpayers (MFJ) have a son age 22 living at home & on parents medical insurance.
    Son did not attend school in 2022 and had a W-2 of $ 37-K. He was not claimed by parents in 2022.
    Son had $ 23-K W-2 in 2023 and did attend school (at least 1/2 time) & had $ 2,300 in tuition - paid by 529 plan.
    Can the son be claimed as an exemption on parents 2023 return ?
    Parents make more than $200-K so I believe they'll be ineligible for any education credits.

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    #2
    Was he a FULL time student for at least parts of five months?

    Did he provide over half of his own support?
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      #3
      To supplement previous reply:

      A full-time student is a student who is enrolled for the number of hours courses the school considers to be full-time attendance.​

      Support is not based on income.

      There are no dependent exemption deductions through 2025 (TCJA). There is a child tax credit, which is phased out for higher income taxpayers. The IRS form will show the result.

      Also, you should ask where the son lives. EDIT: nevermind, you said lives with parents.
      Last edited by Rapid Robert; 02-27-2024, 12:33 PM.
      "You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard

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        #4
        The son in my post was enrolled August thru December 2023, obtaining 13 credit hours - so he was a full-time student.
        He lived at home all year and was on parent's medical insurance. Did part time work during the five months.
        Apparently had worked full time prior to enrollment in school. The more than 1/2 of support test is always difficult for me.
        Does medical insurance count as support as well ?

        Comment

          #5
          To use an old phrase, I've always thought of the cost side of support to be, "what did it cost to keep body and soul together?" Room and board is a cost of support. Health insurance I believe is also. Travel, education, clothing, local transportation, entertainment, I think most of those count as the cost of support. As to who paid, it's usually from savings, earnings, or property ownership. (imputed rent e.g FMV of housing), or something -- I haven't had to actually calculate support percent for ... I can't remember how long.

          There is an IRS worksheet, you can't go too wrong by using it. Your software may have it.
          "You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard
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            #6
            Thanks Robert
            The medical insurance (if it can be considered support) would be a big part of this. For family coverage, Dad's cost for family
            insurance totals about $ 21,831 for premiums & HSA. If junior grossed $ 27-K he probably netted less than $ 20-K.
            I'm probably out of my league here but if the test is simply more than 1/2 of total support, seems to me that Mom & Dad are likely to
            qualify for the $500 credit. Living at home offers significant financial benes compared to living out in the real world.

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              #7
              Tax wise it may be beneficial for son to claim himself. Education credit will not appear on parents return.
              This post is for discussion purposes only and should be verified with other sources before actual use.

              Many times I post additional info on the post, Click on "message board" for updated content.

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                #8
                Originally posted by BOB W View Post
                Tax wise it may be beneficial for son to claim himself. Education credit will not appear on parents return.
                Dependency is a matter of fact - not a matter of choice. The son is either a QC or he is not.

                RWG - consult Reg. 1.152-1 for the IRS explanation and details of support. You also need to remember- the support test for a QC is looked at from the contribution from the child and not from the parents.
                • Likes 1

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                  #9
                  "Tax wise it may be beneficial for son to claim himself."

                  Maybe you meant, for parents not to claim the son. (He still must check box "could be claimed" if it applies).

                  Also, I keep on forgetting that Child tax Credit only applies to age 16 and under. The amount in play here is at most $500 Other Dependent credit.
                  "You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard

                  Comment

                    #10
                    Here is a link for the IRS worksheet for support. Not sure when it came out, but I usually have struggled with support until I came across this worksheet.
                    https://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf
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