Can I Claim My 20 Year Old on My Taxes?

Determining whether you can claim your 20-year-old on your taxes involves a look at specific criteria set by the Internal Revenue Service (IRS). The possibility hinges on whether they fit into one of two categories: a “Qualifying Child” or a “Qualifying Relative.” Each category has its own distinct set of tests that must be fully satisfied. Understanding these rules is the first step in correctly determining dependency status and accessing potential tax benefits.

The Qualifying Child Rules

The most common way a 20-year-old can be claimed as a dependent is by meeting the five tests for a Qualifying Child. These tests cover relationship, age, residency, support, and whether a joint return is filed. Failing even one of these tests means the individual cannot be claimed under this category, though they might still be eligible under the Qualifying Relative rules.

• Relationship: The 20-year-old must be your son, daughter, stepchild, foster child, brother, sister, half-brother, half-sister, or a descendant of any of them, such as a grandchild, niece, or nephew. An adopted child is treated the same as your own child for tax purposes.
• Age: A qualifying child must generally be under the age of 19. However, an exception for full-time students extends the age limit to under 24. To be considered a full-time student, the individual must be enrolled for the number of hours or courses the school considers to be full-time attendance. This status must be maintained for at least part of five calendar months during the tax year, although these months do not need to be consecutive. An exception also exists for individuals who are permanently and totally disabled, as there is no age limit for them.
• Residency: The residency test requires that the child must have lived with you for more than half of the year. Certain temporary absences are permitted and are still counted as time living with you. These include time away from home for education, illness, business, vacation, or military service. For example, a 20-year-old away at college is still considered to be living at home for the purposes of this test.
• Support: For the support test, the 20-year-old cannot have provided more than half of their own financial support during the year. Support includes expenses like food, lodging, clothing, education, and medical care.
• Joint Return: The joint return test stipulates that the child cannot file a joint tax return with a spouse for the year, unless they are filing only to claim a refund of withheld income tax or estimated taxes paid.

The Qualifying Relative Rules

If your 20-year-old does not meet the age test to be a Qualifying Child, you may still be able to claim them as a Qualifying Relative. This path has a different set of four tests that must be met.

• Not a Qualifying Child: The first requirement is that the person cannot be your Qualifying Child or the Qualifying Child of any other taxpayer.
• Member of Household or Relationship: The person must either live with you for the entire year as a member of your household or be related to you in one of the specified ways, which includes children, parents, and siblings.
• Gross Income: To meet this test, the dependent’s gross income for the year must be less than a specific amount set by the IRS. For the 2024 tax year, this amount is $5,050. Gross income includes all income the person received in the form of money, goods, property, and services that is not exempt from tax.
• Support: The Support test for a Qualifying Relative is different than for a Qualifying Child. You must have provided more than half of their total support for the year. This requires a calculation of all support expenses, including housing, food, transportation, and medical costs, to document that your contribution exceeded 50%.

Tax Benefits of Claiming a Dependent

Successfully claiming your 20-year-old as a dependent unlocks several tax benefits that can reduce your overall tax liability. A 20-year-old is too old to qualify for the Child Tax Credit, which is generally for children under the age of 17. However, other credits and deductions are available.

The Credit for Other Dependents is a non-refundable tax credit worth up to $500 for each qualifying dependent who cannot be claimed for the Child Tax Credit. This credit directly reduces the amount of tax you owe. It is available for dependents who meet either the Qualifying Child or Qualifying Relative tests.

Parents of college students may be able to claim education tax credits. The American Opportunity Tax Credit (AOTC) is for qualified education expenses paid for an eligible student for the first four years of higher education. It is a credit of up to $2,500 per eligible student. The Lifetime Learning Credit (LLC) is another option, offering up to $2,000 per tax return for qualified education expenses, and it is not limited to the first four years of postsecondary education. There are income limitations for both credits, and you cannot claim both for the same student in the same year.

You can also include medical expenses you paid for your dependent when calculating the medical expense deduction. If you itemize your deductions, you can deduct the amount of qualifying medical expenses that exceeds 7.5% of your adjusted gross income (AGI). This can include payments for doctor visits, dental care, and prescription medications for the dependent you claim.