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I have a new client that has a child who made $22,000. The dependent will be getting a refund due to overpayment. Can the parents claim her as a dependent with the child indicating it on her return or are the parents out of luck because she has to file a return?
Thanks
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The parents must meet all of the dependency tests including the support test in order to claim the child. It does not matter if the child files a tax return. I would be more concerned about the amount of income the child made.
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Is the child in high school or college? This really makes a difference.
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She's in college at the end of 2020.
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Parents passed the tests. She lives with them and they pay for more than half the support.
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The IRS has an interactive wizard for dependency. You must correctly address whether they Can be Claimed as a dependent on someone else’s tax return.
Interactive wizards portal includes one for determining dependency:
https://www.irs.gov/help/ita
Don't yell at us; we're volunteers
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They decided to not claim her based on her total income amount.