- You can claim an adult child as a dependent on your taxes if he meets the Internal Revenue Service definition of a dependent. As of 2010, adult dependents may not make more than $3,650 in gross income, must be a citizen of the U.S. and a relative or full-time member of the household. In general, a full-time member of the household lives with you more than half the year and depends on you for the majority of his expenses. The adult may not file a joint tax return, but can live away from home as long as he depends on you for half of his support.
- Children count as dependents as long as they are not 19 years old by the end of the year. If the adult is a student, you may claim him as a dependent until the age of 24 as long as he takes a full course load -- the college determines what counts as a full course load -- for at least five months during the year. This assumes the student meets the other requirements of dependency.
- The IRS reduces the deduction for dependents by up to one-third of its value depending on your income. As of 2010, the IRS penalizes earners who file a joint return and make more than $250,200 after adjustments, such as contributions to a retirement account. The exemption shrinks after an adjusted gross income of $166,800 for single payers, $208,500 for head of household and $125,100 for married filing separately.
- Even if you normally would be able claim an adult child as a dependent, a parallel tax system for high earners called the "alternative minimum tax" eliminates dependent exemptions. The AMT affects millions of middle-income earners, and the IRS has not adjusted AMT income limits since its inception in the early 1970s, according to Bill Bischoff of Smart Money.
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