Claiming dependents can save you money on your taxes, but people are often unclear, especially when it concerns adult children.
If you have adult children living at home and\or attending college – should you claim them as your dependent? Here are some of the basics you should know for deciding who to claim.
- Under age 24 and a full-time student for at least 5 months of the year. You provided over half of his or her support.
- School includes a technical, trade, or mechanical school. Does not include a school offering courses only through the Internet.
- If not attending college full-time, did they have gross income of less than $4,350 in 2022, lived with you all year and you provided over half of his or her support.
- Student loans count as support by the person responsible for the loan payment.
- A person’s own funds aren’t support unless they are actually spent for support.
Support includes expenses like: Food, clothing, lodging, education.
Check out this worksheet on the IRS website, where you can determine whether or not you pass the test to claim your dependent.
Concluding if your child over 18 is still your dependent can be confusing especially when determining the support test. We can help you determine this, please contact us.