Eligibility Guide- Can You Legally Claim Your Adult Child as a Dependent on Your Taxes-

Can you claim an adult child as dependent?

Claiming an adult child as a dependent on your taxes can be a significant financial benefit, but it’s important to understand the rules and qualifications set by the IRS. While many people assume that only minor children can be claimed as dependents, the IRS provides specific criteria for adult children as well.

First and foremost, to claim an adult child as a dependent, they must be either a son, daughter, stepchild, foster child, or a descendant of any of these individuals. The child must also be younger than you and either younger than 19 years of age or a full-time student who is younger than 24 years of age at the end of the calendar year. In some cases, individuals who are permanently and totally disabled at any age can also be claimed as dependents.

One of the key requirements for an adult child to be claimed as a dependent is that they must not have provided more than half of their own support during the tax year. This means that the child must not have earned more than $4,300 in 2021 (the limit may change annually), and you must have provided more than half of their total support for the year.

Additionally, the adult child must have lived with you for more than half of the tax year, unless they are a student and lived with you for more than half the year, or they were a student and away from home for at least 5 calendar months. There are exceptions for children who are serving in the military or who are disabled and unable to live independently.

Another important factor to consider is the relationship between you and the adult child. If you are claiming a child who is not your biological or adopted child, the child must have lived with you for more than half of the tax year and you must have provided more than half of their support.

It’s crucial to note that claiming an adult child as a dependent can have tax implications, both for you and the child. For example, if the child is eligible for a refund from their own tax return, they may need to adjust their return to account for the dependency claim. Additionally, if the child is claimed as a dependent on another person’s return, it could result in penalties and interest.

Before claiming an adult child as a dependent, it’s advisable to consult with a tax professional or review the IRS guidelines to ensure that you meet all the necessary requirements. By doing so, you can maximize your tax benefits while avoiding potential penalties and tax complications.