An adult dependent may entitle you to the Credit for Other Dependents. It is a credit of up to $500 for each qualifying dependent but does phase out with modified adjusted gross income over $200,000 for single/head of household filers and $400,000 for married filing jointly filers.
How much of a tax deduction am I able to claim for each dependent who meets the requirements for a qualifying child or a qualifying relative? Share: Each dependency exemption you claim reduces your taxable income by $5,050.
Claiming a dependent on your tax return can significantly reduce your tax bill or increase your refund.
If you can claim an adult as a dependent, you might be able to claim certain tax credits and deductions, or use a more favorable filing status, which can reduce your overall tax liability. (A deduction reduces your taxable income, which reduces your tax bill; a credit reduces your tax bill, dollar for dollar.)
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.
Dependents – If you can be claimed as a dependent by another taxpayer, your standard deduction for 2024 is limited to the greater of: (1) $1,300, or (2) your earned income plus $450 (but the total can't be more than the basic standard deduction for your filing status).
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.
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.
Identifying and claiming tax deductions will reduce your taxable income. Exploring and claiming tax credits can significantly reduce your tax bill or increase tax refunds. Maximizing contributions to retirement accounts can increase tax benefits. Consider adjusting withholding to optimize tax refunds.
If you're a dependent on someone else's tax return and you need to file your own, your standard deduction is limited to the greater of $1,250 or the sum of $400 plus your earned income. However, if your income meets or exceeds the standard deduction for your filing status, this rule does not apply.
Standard deduction amounts
The standard deduction for 2024 is: $14,600 for single or married filing separately. $29,200 for married couples filing jointly or qualifying surviving spouse. $21,900 for head of household.
What you'll get. The most you can claim is $592.
For tax year 2024 (the taxes you file in 2025), the Child Tax Credit is worth up to $2,000 per qualifying child under age 17. You will be eligible for the full credit if your modified adjusted gross income is $400,000 or under for those who are married filing jointly and $200,000 or under for all other filers.
The IRS defines a dependent as a qualifying child (under age 19 or under 24 if a full-time student, or any age if permanently and totally disabled) or a qualifying relative.
The taxpayer's spouse cannot be claimed as a dependent. Some examples of dependents include a child, stepchild, brother, sister, or parent. Individuals who qualify to be claimed as a dependent may be required to file a tax return if they meet the filing requirements. How do I apply the dependency tests?
There is no age limit for how long you can claim adult children or other relatives as dependents, but they must meet other IRS requirements to continue to qualify. Additionally, once they are over 18 and no longer a student, they can only qualify as an "other dependent," not a qualifying child.
The maximum credit amount is $500 for each dependent who meets certain conditions. This credit can be claimed for: Dependents of any age, including those who are age 18 or older. Dependents who have Social Security numbers or Individual Taxpayer Identification numbers.
However, to claim a college student as a dependent on your taxes, the Internal Revenue Service has determined that the qualifying child or qualifying relative must: Be younger than the taxpayer (or spouse if MFJ) and: Be under age 19, Under age 24 and a full-time student for at least five months of the year.
The child must have lived with you for more than half of the year.2 3. The person's gross income for the year must be less than $4,300.3 Gross income means all income the person received in the form of money, goods, property and services, that isn't exempt from tax.
You must stop claiming your college student as a dependent once they are 24 years old or older, or if they start filing their own taxes jointly with a spouse.
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.
In addition to lowering taxable income, claiming dependents may also enable you or your clients to be eligible for tax credits specifically designed to support families, such as the child tax credit and the earned income tax credit.
After an inflation adjustment, the 2024 standard deduction increases to $14,600 for single filers and married couples filing separately and to $21,900 for single heads of household, who are generally unmarried with one or more dependents. For married couples filing jointly, the standard deduction rises to $29,200.
You can claim the standard deduction unless someone else claims you as a dependent on their tax return.