Mark Bole wrote:
[snip]
- quote -

a child goes off to college. In this instance, I believe domicile
is important because we need to define temporary absences for
education.

You do raise an interesting issue relating to when a child
departs a residence that is home for both parents and while
attending school, the parents split up. Assuming that the child
has no intention to make his residence at school his new
domicile, then he keeps his old domicile. If one of the parents
still maintains that domicile, we have our answer unless the
child decides to change domiciles. If the parents sell that home
and each parent moves into a new home, with whom is the child
living? I think you now look to intent. Where does the child
intend to live for more than six months in the year? Basically,
it means the child is going to determine who gets the dependency
exemption assuming the child is not self-supporting, is still
under age 24, a full time student and the parent of choice agrees
to provide a home for the child.

I agree that as a practical matter, the parents will probably
decide who gets the exemption and in those cases where they can't
agree, the child is going to make the decision for them based on
the child's intent.

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Alan wrote:
- quote -

This is the first time I've heard domicile used in relation to the tests
for dependency, usually it's in the context of being a resident of one
state or another. Thanx for giving me a new way to look at it, one of
the benefits of this discussion group.

A further analysis would probably have to take into account age as well.
For example, in the case of a younger child splitting time between the
households of custodial and non-custodial parent, where would the
domicile be, and can it change from year to year depending on where the
majority of nights are spent? What about the college student whose
parents split up, or move to a smaller "empty nest"? Determining his or
her domicile might be more challenging. Nowadays, with college students
typically taking more than four years to finish, could you say that the
18-year old freshman "intends to return to the vicinity of campus
whenever absent" for the next 5-plus years, and then to wherever the
first post-graduation job is?

As a practical matter, I'm guessing it rarely gets audited as long as
only one tax return claims the exemption. If a student is ready to cut
the financial ties and provide more than half of his (her) own support,
where he lives becomes irrelevant for determining dependency, as no one
who supports themselves can be (claimed as) a dependent.

-Mark Bole

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In article <UPTKk.4211$c45.2634[at]nlpi065.nbdc.sbc.com> ,
Rick <Rick[at]nospam.com> wrote:
- quote -


If the only reason he is not your dependent as a qualifying relative is
because of the gross income test, then you are allowed to deduct all
medical costs you paid for him.
--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

--
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- quote -

That's a good question. He lived full-time in an apartment near school all
year, but he continued to use our house as his mailing address for his bank
accounts, driver license, voter registration, etc. He never received any
mail at his apartment, but that's where he actually lived all year.


- quote -

Well, we paid for his rent, his car expenses (including insurance), his
phone and his health insurance. He paid for his meals and entertainment.
His tuition and books were paid through scholarships. His total income was
probably around $10,000.

- quote -

I don't believe he can claim education credits because his actual tuition
expenses were covered by scholarships. If I claim him as an exemption
(rather than him claiming himself), I can claim all of his medical and
health insurance expenses on my medical deductions. If he claims himself,
I'm not sure I can still do that.

--
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Mark Bole wrote:
[snip]
- quote -

Mark raises a very good point here, as I have seen parents lose
the dependency exemption because of a change in domicile (note
that I used the term domicile and not residence).

When a child goes off to college and is not commuting, the
child's absence is temporary as long as the child does not change
domicile.. the place where an individual has his permanent home,
to where whenever absent, he intends to return. Every person has
at all times only one domicile. A child's domicile will remain
his parent's domicile unless the child forsakes that domicile and
intends to remain permanently at a new place where they are
physically and lawfully present.

Many states require a visiting student to obtain a driver's
license and to register any vehicle brought into the state. Many
students open a local bank account to facilitate check cashing
and making deposits. Many students obtain employment where they
go to school to generate extra money or pay for school. Most
students establish new relationships and social connections where
they go to school. Most students will obtain medical services
where they go to school. Many students will change their mailing
address.

So... many of the factors that usually go into determining one's
domicile, will work against a student. These changes can be
refuted as representing a change in domicile. What really matters
are the hard core reasons that go into determining domicile.
E.g., Did the child register to vote where he attends college?
Did the child apply for in-state tuition if attending college
out-of-state? Did the child file state and federal income tax
returns using an address other than his parent's address? (Tax
Tip: never file a tax return that doesn't use your parent's
address.) Do the parent's still maintain a place at their home
for the child to live?

--
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"Mark Bole" wrote:

- quote -

Damn! That'll teach me not to look things up. My mind drifted back into
pre-uniform nonuniform definitions, when the gross income test was always
made irrelevant by the full-time student + age factor. To OP: nevermind.

--
Phil Marti
Clarksburg, MD

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Phil Marti wrote:
- quote -

You're forgetting the biggie: to be a qualifying relative (QR), he also
has to pass the "gross income" test, that is, not more gross income than
the personal exemption amount. That is what keeps most from being a QR
who might otherwise qualify.

It's not hard for a college student with any part time employment or
income from savings/investments to exceed the gross income maximum
amount for QR.

-Mark Bole

--
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"Rick" wrote:

- quote -

As has already been mentioned, it's a full-time student in any five calendar
months of the year.

- quote -

Probably.

The issue has been raised as to whether or not he "lived with" you for more
than half the year, not counting temporary absenses. While that's required
for a qualifying child, it's not required for a "qualifying relative" to be
a dependent. If he isn't a qualifying child, based on the information you
provided he's a qualifying relative for 2008 as long as he passes the
citizenship/US residency and joint return tests. See IRS Publication 501.

As has been mentioned, if he qualifies as your dependent he cannot claim his
own personal exemption even if you don't. Be sure you coordinate this with
him. First, it will avoid the problems that arise if you both claim his
personal exemption. Furthermore, as mentioned, it may be to the family's
benefit for no one to claim his exemption in order to allow him to claim
education tax benefits that may not help you.
--
Phil Marti
Clarksburg, MD

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Mark Bole wrote:
- quote -

Just for completeness, please add to my previous reply:

You cannot claim his dependency exemption if you yourself are a
dependent, if he is not a citizen or North American resident, or if he
is married and filing a joint return with his spouse and does not meet
the exception for that situation.

-Mark Bole

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Rick wrote:
- quote -

No, only all or part of any five months during the year, they don't have
to be consecutive. "Full time student" means whatever the qualifying
education institution defines it to be for their students.

- quote -

Was his permanent residence still with you, or had he established a new
residence at his apartment? If so, when? To determine residence, you
should consider, where did he have the strongest ties? (in no particular
order, including but not limited to: mailing address, bank account
branch office, doctors, voter registration, driver license and vehicle
registration address, location of employment, family, social
connections, property, etc).


- quote -

All that matters for Qual. Child (QC) is whether or not *he* provided
more than half of his *own* support. Remember, support and income for
tax purposes are determined independently of one another, be sure you
understand what counts as support.

- quote -

Possibly, but if you cannot claim the dependent exemption deduction,
then he probably can claim the personal exemption deduction, and vice
versa, but in no case can you both claim the exemption deduction.

There are some less common situations, involving education-related
credits, where you are better off not claiming him even though you could
-- he still can't claim himself but might be able to claim certain
credits, if he meets all the other requirements. Assuming, of course,
you are willing to let him get a tax benefit potentially at your expense.

-Mark Bole

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My son was born in 1985 and will still be 23 as of 12/31/08. He was a
full-time student through August 2008. Does he qualify as a "Qualifying
Child" for tax purposes? The IRS instructions state that he must be "under
24 at the end of the year and a student", but I don't know if that means he
must be a student at the end of the year.

He lived in an apartment near his college for most of the year, but I
provided more than 50% of his support. He began supporting himself
completely in September 2008. Can I claim as an exemption on my 2008
return?

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >