Here's the short answer: The Internal Revenue Service (IRS) will usually let you claim your child if they work or earn an income, no matter the dependent's income source, if certain requirements are met.
Here's more information to help taxpayers determine whether they're eligible to claim the Credit for Other Dependents on their 2022 tax return. The maximum credit amount is $500 for each dependent who meets certain conditions.
Yes, your parents can claim you as a dependent after the age of 18 indefinitely as long as you meet the qualifying household and financial support requirements.
If your child is a full-time college student, you can claim them as a dependent until they are 24. If they are working while in school, you must still provide more than half of their financial support to claim them... You may be able to claim them as a dependent even if they file their own return.
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.
College students who are funding more than half of their living expenses could see a financial benefit from filing independently. To file as an independent, however, a college student must provide for more than half of their financial needs. This includes housing, tuition, food, clothing, transportation, and more.
Once your child reaches the age of 18, they are considered an adult in the eyes of the IRS. However, if they are still a full-time student, you can continue to claim them as a dependent until they turn 24. Once they are no longer a full-time student, you must stop claiming them.
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.
If they plan to claim you on their taxes, you will need to answer “yes” on your return when you are asked if someone else can claim you as a dependent. Next you'll need to gather your W2s and a list of your college expenses (tuition bills, credit card bills from textbooks, etc.)
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.
The Young Child Tax Credit (YCTC) provides up to $1,154 per eligible tax return for tax year 2024. YCTC may provide you with cash back or reduce any tax you owe. California families qualify with earned income of $31,950 or less.
Answer: An unmarried dependent student must file a tax return if his or her earned or unearned income exceeds certain limits. To find these limits, refer to "Dependents" under "Who Must File" in Publication 501, Dependents, Standard Deduction and Filing Information.
If you're a dependent on someone else's return
You can be claimed as a dependent and still need to file your own tax return. Your filing requirement depends on your income, marital status and other criteria.
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.
It's up to you. Since he qualifies as a qualifying child for each of you, either parent may claim the child as a dependent. If you can't decide, the dependency claim goes to whichever of you reports the higher Adjusted Gross Income on your separate tax return.
Key Takeaways
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.
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.
Even if someone else, like a parent, claims you on their own tax return, you may still be required to file your own return.
Do my parents have to claim me as a tax dependent for me to be on their health plan to age 26? No. You do not need to be a tax dependent of your parents to continue to be covered on their health plan.
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 tax credit provides a credit of up to $2,000 per child under age 17. If the credit exceeds taxes owed, families may receive up to $1,600 per child as a refund. Other dependents—including children ages 17–18 and full-time college students ages 19–24—can receive a nonrefundable credit of up to $500 each.
Yes, you are not required to claim the credit for a particular year. If your child's college does not consider your child to have completed the first four years of college at the beginning of 2024, you can qualify to take the credit for up to four tax years.
If you lived with your parents for more than half the year, you're a dependent in the eyes of the IRS. Students who split time between a campus dorm and home should consider carefully to determine their status. Filing taxes incorrectly can lead to delays, even if you believe it would maximize your tax return.