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]

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@JoJo wrote:

The difference is a 403B. 

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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.

[JoJo]

I will definitely check these resources out.  Thank you!