Re: 20 Year Old Qualifying Relative as a Dependent

JoJo

I have a client that supported his 20 year old college girlfriend. She did live with him all year. Her W2 Box 1 wages are $5154.00 (under the $5200.00 limit to be claimed as a qualifying relative). Her box 3 social security wages are $5369. (over the limit to be claimed as a qualifying relative). I have looked and read and read but can't seem to find which box I should use to qualify her or disqualify her as a dependent. My gut is saying box 1 but I want to be certain. Anyone else had this situation?

If it is box 1 and she has educational credits to be claimed, can my client claim these since she was his dependent? He states he paid her tuition. I'm leaning toward yes, he can.

TaxGuyBill

What exactly is decreasing Box 1?

BobKamman

@TaxGuyBill Why would it matter? Or is it just a "Friday idle curiosity" question?

JoJo

The difference is a 403B. I think I have made too much of the W2 which was the only income. I believe I should have been looking at gross income on the 1040.

TaxGuyBill

@JoJo wrote:

The difference is a 403B.

Assuming you mean §403(b), at first glance it says "under a salary reduction agreement ... shall be excluded from the gross income".

That means that portion is NOT part of "gross income". The $5200 threshold is based on "gross income".

JoJo

Thank you for your reply. After I made my post I realized I was looking at the income incorrectly and had come to the conclusion that the gross income was under the $5200.00 limit. It is nice to have professionals, such as yourself to help a gal out.

Terry53029

In answer to your 2nd question on education, YES if all requirments met, because she is his dependent, and he paid her tution

qbteachmt

Are you familiar with the IRS resources? There is an Interactive Tax Assistant "wizard" for these scenarios.

https://www.irs.gov/help/ita

Plus:

https://www.irs.gov/credits-deductions/individuals/dependents

https://www.irs.gov/faqs/filing-requirements-status-dependents/dependents

Those are great places to start from.

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JoJo

I will definitely check these resources out. Thank you!