Can I Claim My Adult Child on My Taxes?

Many parents find themselves asking if they can claim their adult child on their taxes. The ability to claim a dependent, particularly one who is over 18, is a common point of confusion during tax season. The Internal Revenue Service (IRS) has established specific criteria that must be satisfied. These rules are designed to ensure that only taxpayers who provide significant financial support for a relative receive the associated tax benefits.

The Qualifying Child Tests

To claim an adult child as a “Qualifying Child,” you must meet five distinct tests set by the IRS. The first, the relationship test, is met as the individual is your son, daughter, stepchild, or adopted child.

The age test has specific conditions. An adult child must be under age 19 at the end of the tax year, or under age 24 if they were a full-time student for at least five months of the year. A “full-time student” is defined as someone enrolled for the number of hours or courses the school considers to be full-time attendance. An exception exists for a child of any age who is permanently and totally disabled.

The residency test requires that the child must have lived with you for more than half of the year. The IRS allows for temporary absences, such as for education, illness, or military service, without violating this rule.

The support test stipulates that the child cannot have provided more than half of their own financial support during the tax year. This means you must have paid for more of their living expenses than they did.

The joint return test must also be met. Your adult child cannot file a joint tax return with a spouse for the year in question. An exception exists if they file a joint return solely to claim a refund of income tax withheld, and no tax liability would exist for either spouse if they had filed separately.

The Qualifying Relative Tests

If your adult child does not meet the requirements to be a Qualifying Child, you may still be able to claim them as a “Qualifying Relative.” This involves satisfying a different set of four tests. The first test is that the individual cannot be your qualifying child or the qualifying child of any other taxpayer.

A primary requirement is the gross income test. The adult child’s gross income for the tax year must be less than a specific amount set by the IRS, which is $5,050 for the 2024 tax year. Gross income includes all income the person received in the form of money, goods, property, and services that is not exempt from tax.

The support test for a qualifying relative is different than for a qualifying child. You must have provided more than half of the adult child’s total support for the entire year. This is a direct comparison of the financial support you provided versus the total support the child received from all sources, including their own funds. It requires a careful calculation of all living expenses.

The final test is the relationship test, which is met because the individual is your child. This path is often used for children who are over the age limit for a qualifying child but still rely on their parents for financial support.

Calculating Total Financial Support

Determining whether you provided more than half of your adult child’s support requires a detailed calculation of their total living expenses for the year. Total support includes the cost of:

• Food
• Lodging
• Clothing
• Education
• Medical and dental care
• Recreation
• Transportation

You must sum up the total amount spent on the child’s support from all sources, including funds you provided, money the child spent, and support from other individuals or agencies.

To calculate your portion, you only count the amounts you directly paid. When it comes to lodging, the value is not what you paid for rent or mortgage, but the fair market value of the portion of the home the child used. Fair market value is the amount you could reasonably expect to receive from a stranger for the same type of lodging.

Once you have two figures—the total support the child received from all sources and the amount you provided—you can determine if you meet the test. For the Qualifying Relative test, your contribution must be more than 50% of the total. For the Qualifying Child test, the child cannot have provided more than 50% of their own support.

Tax Benefits of Claiming an Adult Child

Successfully claiming an adult child as a dependent can result in several tax advantages. One of the primary benefits is the Credit for Other Dependents. This is a nonrefundable credit worth up to $500 for each qualifying dependent. An adult child, even if they meet the dependency tests, will not make you eligible for the more substantial Child Tax Credit.

Claiming a dependent can also impact your filing status. If you are unmarried, claiming a qualifying child or qualifying relative may allow you to file as Head of Household. This filing status typically offers a higher standard deduction and more favorable tax brackets compared to filing as Single. To qualify, you must have paid for more than half the cost of keeping up a home for the year for a qualifying person who lived with you for more than half the year.

Claiming a dependent can open the door to other tax deductions and credits. You may be able to deduct medical expenses you paid on behalf of your adult child dependent. You might also be eligible for certain education-related tax benefits, such as the Lifetime Learning Credit, for tuition and fees you paid for the dependent’s courses.