Hi everyone,
I’m a full-time student turning 25 on December 1, 2024, and I don’t have much income at all. I thought I could still be claimed as a dependent since I’m a student, but now I’m not so sure. Does anyone know how this works?
If your income for 2024 is under $5050, your parents can still claim you as a dependent.
Flint said:
If your income for 2024 is under $5050, your parents can still claim you as a dependent.
Thanks for clearing that up!
Flint said:
If your income for 2024 is under $5050, your parents can still claim you as a dependent.
Thanks for clearing that up!
What KGT said is right. If you were under 24 and a full-time student at the end of the year, your income wouldn’t matter because you’d qualify as a child dependent. But since you’ll be 25 by the end of 2024, your income needs to be under $5050 to qualify as a dependent under the relative rules.
@Micah
This is true for both 2023 and 2024. Since you weren’t under 24 for either year, you don’t qualify as a ‘child.’
You’d only qualify as a dependent in either year if you meet the ‘relative’ criteria. Here’s the IRS link for more details: https://www.irs.gov/credits-deductions/individuals/dependents.
Flint said:
If your income for 2024 is under $5050, your parents can still claim you as a dependent.
Since you’re not considered a ‘child’ anymore, I think your parents would need to prove they provide more than half of your support. Do you have any grants, scholarships, or loans? Those count as support you provide for yourself.
If anyone else is wondering about dependents, the IRS has a tool for that:
https://www.irs.gov/help/ita/whom-may-i-claim-as-a-dependent
I was about to give the FAFSA answer before realizing this isn’t about that.
Still, I work in financial aid, so let me know if you have questions about dependency rules for FAFSA!
Why would you want your parents to claim you? You’d miss out on some benefits, like the American Opportunity Credit or Lifetime Learning Credit, which can be worth a lot. Plus, you might qualify for more financial aid if you file as independent.
@Arie
The Lifetime Learning Credit wouldn’t help OP since it’s non-refundable, and they’d get nothing without federal tax liability. The American Opportunity Credit might not be an option either if it’s already been claimed 4 times.
If OP’s parents can claim them as a dependent, OP would have to indicate on their return that they can be claimed, whether or not the parents actually claim them. So really, why wouldn’t the parents claim the $500 credit for dependents?
@Mal
A lot of times, parents don’t use the money to help their kids with school, so I tend to push students to take the credits themselves if they can. You’re right, though—my bad on the Lifetime Learning Credit mix-up.
@Arie
That doesn’t apply here since OP’s parents would have to cover more than half their support to qualify. If parents are eligible, the dependent box must be checked, so they’d get the credit.
It’s usually better to work out what benefits the whole family most.
@Arie
I don’t think your approach fits here. OP has no income and probably relies on their parents for all their support. It’s best to consider what works best for everyone involved.
Micah said:
@Arie
I don’t think your approach fits here. OP has no income and probably relies on their parents for all their support. It’s best to consider what works best for everyone involved.
Even with no income, OP could still get 40% of the AOC refunded. We can’t assume their parents are paying most of their expenses. It depends on the situation.
@Arie
OP said they have almost zero income, so it’s likely their parents are providing the majority of support. That seems pretty clear.
@Arie
If there’s a credit to be claimed, the parents would benefit more than OP since OP has no taxable income. Also, tax dependency isn’t the same as FAFSA dependency—they’re determined differently.
Micah said:
@Arie
If there’s a credit to be claimed, the parents would benefit more than OP since OP has no taxable income. Also, tax dependency isn’t the same as FAFSA dependency—they’re determined differently.
Parents might make too much to qualify for the credits, though. And OP could still get up to $1000 from the AOC as a refund if they have tuition expenses.
Good point on the FAFSA vs. tax dependency differences.
@Arie
Parents making too much is a big assumption. Also, only 40% of the AOC is refundable, so OP could get a max of $1000, but parents might get up to $2500 if they have enough tax liability.