Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.
03-12-2018 02:16 PM
I have a 22 year old child, living at home, going to school part time and working part time. How do I report the money I paid to the community college on my taxes ???? Can I claim her as a dependent, exemption or what ?? they made $13,000 last year but that's MY $3000 on their tuition statement from the college...........help !!!
03-13-2018 12:07 AM
Hello, kjm121462, and welcome to the community.
On the surface, your child would appear to meet all the requirements to qualify as your dependent - if you provided more than half of the support for their living expenses. That might be close, given a $13K income on their side, but if you include all of your expenses (housing, insurance, food, clothing, vehicle costs, etc.), and compare that to what they spent, I would guess that you would come out as providing more than 50% of the costs.
In general, it is usually more beneficial for parents to claim their children who are still students, since the non-refundable portion of education credits tend to not be completely used up by the student's tax bill.
Bottom line - if you are able to claim the dependency for your child, then you would also get to claim the education credit. If they did, in fact, provide more than half of their own support, then they can claim their own exemption and also the education credits.
Hope that helps clear things up a bit...
03-16-2018 07:35 PM
This is right. In order to be your dependent if your child is over 18, they must be a full time student for part of at least 5 months of the year. (This could be Jan 31-May 1-- It doesn't have to be 5 full months.) So, if she was a full-time student for one semester, but not the other, she'd still be eligible to be your dependent.
If she isn't your dependent, she'd have to claim the expenses you paid on her behalf and get any benefit. Since she's still living with you and you're paying for her college, I'd tell her that I expect her to give me any amount she gets back as a result. If she's eligible for the American Opportunity credit, her credit (with only $13,000 of income) will not be as large as yours would have been, but unfortunately that's the way it is. (When looking at the 1040 tax return-- education credits will be shown on lines 50 and 68.