Best Ways To Handle An At Home College Student Come Tax Time

With the recent economic instability in the country, many children are living at home longer than in previous years. As kids graduate high school and enter college, several are opting to live at home with mom and dad, rent free. This type of living situation can be less than ideal for parents who had hoped to enjoy the time their kids were away at college, but not everything about this circumstance is negative. One area where it is beneficial to have a college aged child living at home is tax time.


Some of the advantages to allowing your college student children to live at home include the following:


  • Typically an adult child no longer fits the IRS’ definition of dependent, even if the child lives at home. But, if your adult child is in college and not earning enough to file their own return, you may be able to claim them as a dependent.
  • The age limits on claiming a college student as a dependent are from ages 19 to 24.
  • The IRS also imposes a requirement that your 19 to 24 year old attend college at least five months out of a 12 month calendar year.


Parents can also get a tax break for helping out with their kids’ college tuition. There are restrictions to taking this credit, the biggest one being your income. If you make over a certain amount you are not allowed to claim the tuition as a tax credit. Given the complexities involved with figuring out what you are entitled to claim, and under what circumstances, it is crucial to seek the advice of a knowledgeable legal tax professional. You should also know the rules about the tax benefits of an adult child living at home, who is not also enrolled in college. In some instances parents are entitled to a tax break for an adult child who has moved back home, even if the move is temporary. Call our office today for more information about this important issue, and the tax benefits available to you for continuing to house your kids even as they become adults.


If you have questions about taxes and how to handle your adult child living at home, let the professionals at Nielsen Law Group help you negotiate with the IRS. Call (480) 888-7111 or submit a web request here.