Can I Claim My 24-Year-Old Daughter as a Dependent?

Claiming your 24-year-old daughter as a dependent involves specific Internal Revenue Service (IRS) rules and can lead to valuable tax benefits. Eligibility hinges on a set of precise criteria. For a 24-year-old, the deciding factors are often her status as a student, her annual income, and the financial support you provide. To claim a dependent, you must meet the criteria for one of two sets of tests: the Qualifying Child test or the Qualifying Relative test.

The Qualifying Child Test

To claim your daughter as a “Qualifying Child,” she must meet five specific tests, with the age requirement being the most significant hurdle. The IRS requires that a qualifying child must be younger than the taxpayer and either under age 19 or a “full-time student” under age 24 for at least five calendar months during the year. These five months do not need to be consecutive.

A full-time student is someone enrolled for the number of hours or courses the school considers to be a full-time schedule. Eligible schools include elementary schools, junior and senior high schools, colleges, universities, and technical, trade, or mechanical schools. An exception to the age test exists for a child of any age who is “permanently and totally disabled.”

The relationship test is automatically met, as she is your daughter. The residency test requires that she must have lived with you for more than half of the year, and absences for temporary reasons like education or illness are permitted. The support test stipulates that the child must not have provided more than half of her own support for the year. Finally, the joint return test states that your daughter cannot file a joint tax return with a spouse, unless the return is filed solely to claim a refund.

The Qualifying Relative Test

If your daughter does not meet the criteria to be your qualifying child, you may still be able to claim her as a “Qualifying Relative.” This path has its own set of four distinct tests. First, the individual cannot be your qualifying child, nor the qualifying child of any other taxpayer.

The second test involves a specific relationship. Since she is your daughter, she automatically meets the relationship test, which means she does not have to have lived with you for the entire year to qualify.

The gross income requirement is a significant hurdle. For the 2024 tax year, your daughter’s gross income must be less than $5,050. “Gross income” includes all income received that is not exempt from tax, such as wages, salaries, unemployment compensation, and taxable interest.

Finally, the support test for a qualifying relative is stricter than for a qualifying child. You must have provided more than half of your daughter’s total support for the entire calendar year.

The Support Test Explained

Both the Qualifying Child and Qualifying Relative rules have a support test, and both require calculating “total support.” Total support is the sum of all amounts spent on a person’s living expenses. The IRS includes a broad range of costs in this calculation, such as food, clothing, education, medical and dental care, recreation, and transportation.

A significant component is lodging. To determine the value of lodging you provide, you must use its fair rental value, which is the amount you could reasonably expect to receive from a stranger for the same lodging. This value is then divided among the household members.

To apply the support test, you should first calculate the total support your daughter received from all sources during the year. This includes funds she provided for herself from earnings or savings, as well as support from you and others. Next, determine the amount of support you personally provided.

Certain items are specifically excluded from the total support calculation, including life insurance premiums, income taxes, and scholarships. Funds that your daughter has from her own savings do not count as support she provided unless those funds were spent on her support expenses.

Tax Benefits for Claiming a Dependent

Claiming your 24-year-old daughter as a dependent provides several tax benefits. The primary benefit is the Credit for Other Dependents. This is a nonrefundable credit, meaning it can reduce your tax liability to zero, but you will not get any of it back as a refund. For the 2024 tax year, this credit is worth up to $500 for each qualifying dependent.

Eligibility for the full credit is subject to income limitations. The credit begins to phase out for taxpayers with a modified adjusted gross income (MAGI) above $200,000 for single filers and $400,000 for those married filing jointly.

Claiming a dependent can also allow you to deduct medical expenses you paid for her if you itemize. You can only deduct the amount of qualified medical expenses that exceeds 7.5% of your adjusted gross income.

Having a qualifying dependent could also allow you to use the Head of Household filing status. To qualify, you must be unmarried, pay for more than half the costs of keeping up a home for the year, and have a qualifying child or relative live with you in the home for more than half the year. This status offers a higher standard deduction and more favorable tax brackets than the Single filing status.