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Los of Dependent Exexmption


Christian

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A client's daughter entered college after completing high school at age 18. She quit not completing her freshman year and went to work. In 2022 she turned 20 and did not attend college for the entire year and earned over $17,000 in wages. She still lives at home but I told the mother they will lose her dependent exemption for 2022. She has now returned to college this year 2023 and I assume they can pick it back up for 2023. Is this a correct reading of this ?

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That is correct.  If she attends as a half-year student and is still under 24; they can take her back as a dependent.  Always remember that the tuition credit follows the dependency and in a case like this will usually not help the student taxwise.  It doesn't matter who pays the tuition.  We have at least one of these every year.  

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