Apr 9, 2008

Q & A: Support Test for Dependent Children

QUESTION: I'm having trouble with the worksheet to determine if my 21-year-old daughter can still be claimed as my dependent. She's a full-time student and lives with me, but also works full-time and has a good salary. We seem to be very close to the 50/50 situation. The worksheet is clear enough, but I don't know what items to include. What might be "other" expenses or support? If I provide a car for her full-time use, how does that figure in? What sort of expenses might I be forgetting in the calculation of total expenses?

ANSWER: You raise commonly asked questions here. Generally, the expense categories for determining support are:
1) the child's share of household expenses
2) the child's total clothing expenses
3) the child's total education expenses
4) the child's total medical and dental expenses not covered by insurance
5) the child's total travel and recreation expenses
6) other related expenses
If you paid for at least 50% of the total cost for these items, you should be able to claim your daughter on your tax return. In your example, a car that you provide used primarily by her for necessary travel should count toward the total support amount. We suggest that you visit the IRS web site at www.irs.gov and download Publication 17, Your Federal Income Tax, to find more information regarding dependency tests for children.

1 responses:

Anonymous,  April 10, 2008 at 6:12 PM  

Great post Jimbo ! You are right, this is a commonlly asked question

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