Dependant or not?

[dtimo]

I have a 20yo daughter who is a student.

According to the IRS she is a dependent because she has been a full time student in 5 calendar months.

She has is enrolled in course this term but has only been able to get 9 units so will not be full time this term.

Next month she is moving out of our home and will be using college funds for room and board.

The college funds she will be using are from a 529 set up by her grandfather to which we have not contributed.

We will provide her health insurance and deductibles--pretty high as she is bi-polar.

She currently has no income but may get some part time seasonal work.

If she were a full time student, there would be little question about her being a dependent.

In all backward looking documents she would be one.

But what about now in term of Ch7?

BTW: Her continuing to live with us is not an option as she has become verbally abusive to my wife.

[drowning123]

Did you claim her on your 2008 and 2009 tax returns?

[dspii]

You should be fine. I had a similar case, both my daughters live here and are in college. If I remember correctly, if you claim your daughter as a dependent on your taxes, then they qualify as a dependent for the means test. Typically, by IRS rules, you have to provide at least 1/2 of their support over the past year. So if your daughter lived with you 6 months over the last year, you should be fine. The question is support, do you or have you provided at least 1/2 of her support in the last year?

It sounds like you do by providing her insurance and has been living with you. Being away at college does not disqualify her as a dependent.

[tcreegan]

Hi dtimo,

Remember that BK law is not IRS law. The IRS worries about dependants, but the BK trustee is only interested in where the money came from and where it went. Since she hasn't moved out yet, you do the means tests w/ her in the calculations. But on Sched. J you only use the actual expenses you will be paying for her in the near future.

You are in my thoughts and prayers, bi-polar is a tough illness on caregivers

Tom in Colo

[Flamingo]

In order to claim someone as a dependent, they must reside with you over six months out of the year and you must provide over half their support. It appears you are not or will not be providing over half her support - I would discuss this thoroughly with your attorney and a tax law expert as to whether or not you can claim your daughter as a dependent for this tax year and for 2011.

[AngelinaCatHub]

Flamingo is pretty good in this line. It is my understanding though that if a full time student and/or living with as a student you can use the IRS (as a baseline in law) to establish a dependent up to the age of 26. Also a dependent is a relative that is dependent upon you for age and health reasons normally a family person, but in some cases anyone put into your care by law. 'Hub