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Claiming College Students as Dependents
Does your child/college student qualify as your dependent? If so, you may be eligible for certain tax breaks.
Qualification as a Dependent
To be a “qualifying child” for purposes of the dependency exemption, a child must:
1 - Live in your home for over half the year (temporary absences for education don’t count)
2 - Be your child, stepchild, adopted child, or foster child or your brother, sister, or stepsibling (or a descendant of any of these)
3 - Be under 19 or a “student” under 24 and be younger than you (or be permanently and totally disabled)
4 - Not provide over half of his or her own “support” for the year
5 - Be a U.S. citizen or a resident of either the U.S., Canada, or Mexico (with an exception for certain legally adopted children)
6 - Not file a joint return for the year*
“Student” means a full-time student for at least five months of the year, so a college senior graduating in May or June can qualify. Also, “support” does not include a scholarship received by a full-time student and applied to his or her education if the student is your child.
Potential Tax Benefits
For 2017, the dependency exemption can potentially reduce your taxable income by as much as $4,050. Moreover, the American Opportunity Tax Credit (AOTC) or the Lifetime Learning Credit (LLC) may be available if your child/student qualifies as your dependent.
However, these benefits are phased out at higher income levels. In this situation, you may want to consider not claiming your child as a dependent if doing so would allow your child to claim the AOTC or LLC. (Your child wouldn’t be entitled to a personal exemption.)
* If a child doesn’t meet all the requirements, a “qualifying relative” test may be available.
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