Although a parent can claim a dependent up to the age of 19 they still must be a qualifying dependent so if the child did not live with the parents for more than 1/2 the year AND the child was self supporting they cannot claim the child. So the 17 year old may file their own return and claim a dependent of their own.
Tax filers could claim a CTC of up to $3,600 per child under age 6 and up to $3,000 per child ages 6 to 17.
The rationale? You would have to ask Congress that question. Congress passed that child tax credit law years ago with the cut off at age 17. For 2021 ONLY, they allowed folks to get the child tax credit for children under the age of 18 instead of age 17, but for tax year 2022 it reverted to the ``old'' criteria.
Income: If your child earned income, she can still be claimed as a dependent as long as her gross income is below the IRS threshold for qualifying children, which is $4400 for 2023. If her income exceeds this amount, she may need to file her own tax return.
If you are paying all the household expenses, it probably seems only fair that you should be able to claim your child as a dependent. However, remember the income limitation for dependents who are “qualifying relatives” – they must make less than $4,400/year (for 2022).
For qualifying dependents who are not a qualifying child (called “qualifying relatives” in tax law), the person's gross income for the 2023 tax year must be below $4,700 (for 2023). For qualifying relatives, they must get more than half of their financial support from you.
You can claim the Child Tax Credit for each qualifying child who has a Social Security number that is valid for employment in the United States. To be a qualifying child for the 2024 tax year, your dependent generally must: Be under 17 at the end of the tax year.
The child must be under 19 at the end of the year and younger than you or your spouse if you're filing jointly, OR, the child must be under 24 if they were a full-time student. There's no age limit for children who are permanently and totally disabled.
A minor who may be claimed as a dependent, needs to file a return if their income exceeds their Standard Deduction. A minor who earns less than $14,600 in 2024 will usually not owe taxes but may choose to file a return to receive a refund of tax withheld from their earnings.
You can't claim the EIC unless your investment income is $11,600 or less. If your investment income is more than $11,600, you can't claim the credit. Use Worksheet 1 in this chapter to figure your investment income.
Qualifying child
Age: Be under age 19 or under 24 if a full-time student, or any age if permanently and totally disabled. Residency: Live with you for more than half the year, with some exceptions. Support: Get more than half their financial support from you.
Make sure your dependent meets the IRS requirements. Generally, the IRS requires that the child is under the age of 19 (or under 24 if a full-time student), lives with you for more than half the year, and does not provide more than half of their own financial support.
A teenager who makes more than $400 as an independent contractor has to pay self-employment taxes. So, even if your teen doesn't make enough to owe federal income taxes, he or she will have to file a return and pay self-employment tax.
Changes to Certain Benefits
The five dependency tests – relationship, gross income, support, joint return and citizenship/residency – continue to apply to a qualifying relative. A child who is not a qualifying child might still be a dependent as a qualifying relative.
To meet the qualifying child test, your child must be younger than you or your spouse if filing jointly and either younger than 19 years old or be a "student" younger than 24 years old as of the end of the calendar year.
However, even if two or more persons have the same qualifying child, only one person can claim the child as a qualifying child for all these benefits. Special rules apply for parents who are divorced, separated, or who are living apart.
Whether you can get a tax refund as a teenager depends on whether you file a tax return with your parents or separately, how much income you have to report, and which tax deductions or credits you might qualify for.
You can claim a child who works as a dependent if they still meet the requirements to be a qualifying child – including the age, relationship, residency, and support tests.
Good Reasons
If your income disqualifies you from claiming these credits, your child's income probably doesn't disqualify him or her. Therefore, your child may be able to report payment of education expenses for tax purposes and then claim one of the credits – but only if you don't claim him or her as a dependent.
Even if you're filing as a dependent or a dependent child, you must file a tax return if: You're a single or married dependent under age 65 with: Unearned income more than $1,100. Earned income more than $12,200.
Cons of Claiming a College Student as a Dependent
If your child has earned income and you claim them as a dependent, they lose the opportunity to claim their own personal exemption (when applicable in future years) and certain tax credits that could be more advantageous for them.
If your gross income was $5,050 or more, you usually can't be claimed as a dependent unless you are a qualifying child. For details, see Dependents.