<p>Okay, so DD graduated college in May, moved back home long enough to find a job and then rented a house with friends on the other side of town in August. In previous years, we have claimed her on our taxes. Do we claim her this year since she’s been on her own for six months? Up until November, she had one part-time job, but was hired as a seasonal worker at another job and then they asked her to stay on part-time. She also volunteers several hours each work teaching literacy classes. She pretty much makes just enough money to live on, yet never asks us for a dime. I’m not sure if we’re supposed to claim her on our taxes or not. DH always does our taxes and he is unsure, too. Any information would be appreciated!</p>
<p>There are five tests the IRS uses, you have to pass all 5. Here is a nice summary:</p>
<p>[The</a> IRS Five Dependency Tests](<a href=“http://www.taxrecipes.com/index.php/44]The”>http://www.taxrecipes.com/index.php/44)</p>
<p>We just experienced the consequences of “failure to communicate” on this subject. </p>
<p>S graduated in May 2009, started a good job in June in another city, so of course didn’t live with us.</p>
<p>DH advised DS on various matters about filing his tax return, but somehow the two of them never discussed who would claim S. DH claimed him as we certainly paid more than half his expenses, including tuition, and he was a ft student for 5+ months. S claimed himself because he was out on his own and supporting himself.</p>
<p>Well, lo and behold, the IRS noticed. They sent us both a letter pointing out the problem and said one needs to re-file. We had S re-file as the extra tax was less that way and we are reimbursing him. Might be interest and penalty too, but that hasn’t come up yet.</p>
<p>I think it’s possible that you could choose either option (and my advice is worth every penny you’re paying 
)… just only choose ONE, lol.</p>
<p>Thanks so much for the information. I would like to avoid a letter from the IRS, jmmom, so I’ll definitely remember what you say.</p>