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Author: 2gifts Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121219  
Subject: Qualifying child? Date: 3/2/2014 5:54 PM
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I'm just starting DD's taxes, and just want to clarify something. She is 22, and graduated college last May after which she moved back home with us where she has been living ever since. She found a full-time job at the end of September. I think I can claim her as my dependent this year, but that she will be claiming herself next year.

I have read Publication 17 around the definition of a qualifying child, and I want to be sure that I am understanding it correctly. It says:


The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them.

The child must be (a) under age 19 at the end of the year and younger than you (or your spouse, if filing jointly), (b) under age 24 at the end of the year, a student, and younger than you (or your spouse, if filing jointly), or (c) any age if permanently and totally disabled.

The child must have lived with you for more than half of the year.2

The child must not have provided more than half of his or her own support for the year.

The child is not filing a joint return for the year (unless that return is filed only to get a refund of income tax withheld or estimated tax paid).


The one that is confusing me is the second one about the child being under age 24 at the end of the year (which she is) and a student (which she is no longer).

TT asks for occupation, and at this point, she is a Marketing Associate, so I will put that in there, but am I correct that she meets all the tests for a qualifying child for me, and that I will claim her on my taxes?

I just want to make sure, and it's that part about still being a student that is confusing me, since she graduated in 2013.
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Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 120319 of 121219
Subject: Re: Qualifying child? Date: 3/2/2014 7:09 PM
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The one that is confusing me is the second one about the child being under age 24 at the end of the year (which she is) and a student (which she is no longer).

When facing questions of filing status or dependents I always go straight to Pub 501 since there are so many nuances. Starting on page 13 of that pub you'll find a thorough discussion of what constitutes a student for this purpose.

Phil
Rule Your Retirement Home Fool

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Author: 2gifts Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 120320 of 121219
Subject: Re: Qualifying child? Date: 3/2/2014 7:16 PM
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When facing questions of filing status or dependents I always go straight to Pub 501 since there are so many nuances. Starting on page 13 of that pub you'll find a thorough discussion of what constitutes a student for this purpose.

Thanks for the pointer. Having read that, I can see that because she was in school for 5 months in 2013, she qualifies as a student, and so I can take her as my dependent as she meets all of the tests for qualifying child. I guess it is the 5-month stipulation that handles that part about the year the child graduates, and that was the part I was missing.

Thanks for the quick help. I'll get her taxes done now as she will be getting back the bulk of what was withheld because she only worked a few months, and didn't make very much. Next year should be closer for her in terms of taxes owed and withheld.

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Author: reallyalldone Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 120397 of 121219
Subject: Re: Qualifying child? Date: 3/8/2014 11:10 AM
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Late reply I know but I finally remembered the other thing about the last year a child is in college. Because they are a fulltime student for tax purposes, they can't qualify for the saver's credit -
http://www.irs.gov/uac/Newsroom/Plan-Now-to-Get-Full-Benefit...

If they are fortunate, they won't qualify for it after that. I have at least one who did. Solvent and self-supporting but still qualifies for at least a partial credit.

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Author: 2gifts Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 120398 of 121219
Subject: Re: Qualifying child? Date: 3/8/2014 12:20 PM
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Thanks. I did not know about this, but as I read the link you provided, I do expect that DS will qualify next year. I will make a note for next year.

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