Can You Claim a 20-Year-Old Child as a Dependent?

Claiming a 20-year-old child as a dependent is a common question for many parents. The Internal Revenue Service (IRS) establishes specific criteria for individuals to qualify as a dependent on a tax return. Understanding these rules is important, as they dictate eligibility for various tax benefits. This article explores the conditions under which a 20-year-old may be claimed, either as a qualifying child or a qualifying relative.

Qualifying as a Child Dependent

A 20-year-old can be claimed as a qualifying child if they meet several specific tests. The age test requires the child to be under age 19 at the end of the tax year, or under age 24 if a full-time student. There is no age limit if the individual is permanently and totally disabled. To be a full-time student, the individual must be enrolled for the number of hours or courses their educational institution considers full-time attendance for part of each of any five calendar months during the year. The educational institution must have a regular teaching staff, a defined course of study, and a regularly enrolled student body.

The relationship test requires the individual to be the taxpayer’s:
Son or daughter
Stepchild or foster child
Brother or sister
Half-brother or half-sister
Stepbrother or stepsister
A descendant of any of them

The residency test requires the child to have lived with the taxpayer for more than half of the tax year. Temporary absences for special circumstances, such as attending school, medical treatment, or vacations, are counted as time lived in the home. This means a college student living away at school can still meet the residency requirement. The support test mandates the child must not have provided more than half of their own financial support for the year.

Support includes the cost of food, lodging, clothing, education, medical and dental care, recreation, and transportation. Scholarships received by the student are not considered support provided by the student when calculating this test. The joint return test specifies that the child generally cannot file a joint tax return for the year. An exception exists if the joint return is filed solely to claim a refund of withheld income tax or estimated tax paid.

Qualifying as a Relative Dependent

If a 20-year-old does not meet the qualifying child criteria, they may still be claimed as a qualifying relative. The individual cannot be a qualifying child of the taxpayer or any other taxpayer. They must also meet either a relationship test or a member of household test.

The relationship test includes a broader range of relatives than the qualifying child rules, such as parents, grandparents, aunts, uncles, nieces, nephews, and certain in-laws. Alternatively, if not specifically related, the individual must have lived with the taxpayer for the entire year as a member of their household. This relationship must not violate local law.

The gross income test requires the individual’s gross income to be less than $5,050 for the 2024 tax year. The support test for a qualifying relative requires the taxpayer to have provided more than half of the individual’s total support for the year. This calculation includes expenses for food, lodging, and other necessities.

The joint return test specifies the individual generally cannot file a joint tax return for the year, unless it is solely to claim a refund of withheld income tax or estimated tax paid.

Tax Benefits for Claiming a Dependent

Claiming a dependent can unlock several tax benefits for the taxpayer. While a 20-year-old generally does not qualify for the Child Tax Credit (requiring the child to be under age 17), other benefits may apply.

For dependents who do not qualify for the Child Tax Credit, such as a 20-year-old qualifying child or a qualifying relative, the Credit for Other Dependents may be available. This non-refundable credit is worth up to $500 per eligible dependent. It begins to phase out when a taxpayer’s modified adjusted gross income exceeds $200,000, or $400,000 for those filing jointly.

A qualifying dependent can also affect eligibility for the Earned Income Tax Credit (EITC). The presence of a qualifying child can significantly increase the amount of EITC received. Unmarried taxpayers may also file as Head of Household if they claim a qualifying child or, in some cases, a qualifying relative. This filing status typically offers a lower tax rate and a higher standard deduction compared to filing as Single.

Education credits, such as the American Opportunity Tax Credit or the Lifetime Learning Credit, may be applicable if the 20-year-old is pursuing higher education. Deductions for medical expenses paid for a dependent may also be possible.

Information for Claiming a Dependent

To claim a 20-year-old as a dependent, taxpayers need to gather specific information and maintain thorough records. Essential personal details for the dependent include their full legal name, Social Security number or Individual Taxpayer Identification Number (ITIN), and date of birth.

Taxpayers should retain documentation that verifies the dependent’s relationship and residency, such as school records, utility bills, or a driver’s license showing the shared address. If the 20-year-old is claimed as a qualifying child due to student status, proof of full-time enrollment for the required number of months is necessary. This can include school transcripts, enrollment verification letters, or Form 1098-T.

Maintaining records of expenses paid for the dependent is important for the support test calculation. This includes receipts for lodging, food, education, medical care, and other necessities. Documentation of any income the dependent earned, such as W-2 forms or 1099 forms, helps confirm they did not provide more than half of their own support or meet the gross income limits for a qualifying relative.