Dependents & Exemptions

There are many factors to clarify before you claim your child as a dependent. Generally a special rule favoring the custodial parent applies where divorced or separated parents together provide more than half the child's support.
The custodial parent will meet the dependency support test even if she did not pay half the child's support.
The parents may arrange for the non-custodial parent to claim the child if IRS Form 8332 is signed by the custodial parent and supplied with the non-custodial parent's tax return.
Form 8332 is a waiver of claiming the exemption and the exception waiver can be used for that year only or for future years as well.
Speak to your local CPA about the other criteria in claiming the child and about Form 8332.

There are 5 dependency tests that must be met in order for you to claim your daughter as a dependent on your tax return. The gross income test does not apply to full-time students under age 24. Therefore, it appears the gross income criteria is satisfied. In order to qualify for the support test, you must supply more than 50% of the total spent to support your child. In general, in order to determine if you spent more than 50% of the support, you should include items such as cash, food and lodging, medical and dental costs, educational expenses, car and transportation expenses, recreation and entertainment expenses. If she was not a full-time student, the gross income she is allowed to earn is $3,900 or less for tax year 2013. Speak to your local CPA for additional items that do and do not qualify for the 50% support test.

There are 5 dependency tests to qualify as a dependent. The gross income test for dependents only applies to dependents 19 or older and not a full time student under age 24. If the other 4 dependency tests are met he does qualify.

If the other 4 of the 5 mandatory dependency tests are met, and if she is a full time student, then you may claim her as a dependent. There are 5 dependency tests needed to qualify as a dependent. The gross income test for dependents applies to dependents 19 or older and not a full time student under age 24. If she was not a full-time student, the gross income she is allowed to earn is $3,900 or less for tax year 2013.

If he is not a full-time student, then you may not claim him as a dependent. There are 5 dependency tests to qualify as a dependent. The gross income test for dependents applies to those 19 or older and not a full-time student under age 24. The gross income he is allowed to earn is $3,900 or less for tax year 2013.

The 2013 Personal Exemption amount is $3,900 per exemption.
The 2012 Personal Exemption amount is $3,800 per exemption.

There are a few issues here. First of all, to claim a child as a dependent who earns more than $3700, he must be under age 19 as of the end of the year, unless he is in college full-time. Children under the age of 24 can be claimed as a dependent without an income limitation provided they are full-time college students. Since your child attends college at night, he could be considered full-time only if he takes the number of classes that is required during the day to be considered a full-time student. We advise you to meet with a CPA in your community to ascertain whether it is in your best interest to claim your child. Often students can qualify for financial aid who claim themselves independent from their parents.