Can I Claim My 18-Year-Old on My Taxes if They’re Still in School?

Determining whether you can claim your 18-year-old child as a dependent on your taxes is an important step for maximizing tax benefits. This decision depends on factors like their educational status and financial dependency. Understanding these criteria ensures compliance with IRS regulations while potentially reducing taxable income.

To navigate this process, it’s essential to evaluate IRS requirements, including relationship and age tests, residency stipulations, support and income rules, student status, and proper documentation. Each of these factors determines eligibility for claiming dependents.

Relationship and Age Tests

The relationship and age tests are key components of IRS guidelines. The relationship test requires the individual to be your child, stepchild, foster child, sibling, or a descendant of any of these. The age test specifies that a qualifying child must be under 19 at the end of the tax year or under 24 if they are a full-time student. For instance, an 18-year-old attending school full-time satisfies the age criteria, allowing parents to claim tax credits and deductions.

Residency Requirement

The residency requirement states that the dependent must have lived with you for more than half of the tax year. Exceptions include temporary absences for education, medical care, military service, or vacation. For example, a child attending boarding school is considered to meet the residency requirement if they return home during breaks. This rule accommodates educational commitments while adhering to tax regulations.

Support and Income Considerations

The IRS requires taxpayers to provide more than half of the child’s financial support for the year, including housing, food, medical care, and education expenses. Additionally, the dependent’s income must not exceed the annual gross income threshold set by the IRS, which for 2024 is $5,000, excluding non-taxable income like scholarships. For example, if a student earns $4,500 from a summer job, while their parent covers $15,000 in expenses, the parent can claim them as a dependent.

Student Status and Enrollment

A full-time student must be enrolled in an educational institution for at least five months during the tax year. Eligible schools include colleges, universities, and technical institutes with regular faculty and curricula. The definition of full-time status varies; for instance, some universities consider students full-time if they take 12 or more credit hours per semester.

Documentation for Dependent Claims

Proper documentation is essential for substantiating the claim of an 18-year-old as a dependent. Key documents include birth certificates, adoption papers, or legal guardianship records to confirm the familial connection. School enrollment forms, medical bills, or utility statements can prove residency. Financial support documentation should include bank statements, receipts, and financial aid award letters. For students, tuition bills, transcripts, and enrollment verification letters are necessary to establish full-time status. Maintaining thorough records ensures compliance with IRS guidelines and supports your claim in case of an audit.