Tax Law (Questions About Taxes)/Dependent

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Question
I have a 21 year old son who is a full time college student. He has a part time job on campus where he earned approximately $2,500. I took him to Vegas for his 21st birthday and low and behold he won a video poker jackpot for $4,000 for which he received a w2-G. Am I correct in that I can no longer claim him as a dependent as his earned income is still below but his gross income is now over the limit of I think it is $3,900? Any other advice you can offer for this situation?

Answer
OJ,

Thanks for your question.

No, that is not correct.  The $3,950 (went up this year) income limitation only applies when someone is qualifying as a dependent under the qualifying relative criteria.  Since your son is a full time student under the age of 24, he is your dependent as a qualifying child.  There are no income limitation on a qualifying child.  Obviously, you must pay over half his support in either case.

Hope this helps.

John Stancil, CPA

Tax Law (Questions About Taxes)

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John Stancil, CPA

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I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at www.mybaldcpa.com. I also offer seminars and consultations to churches and clergy on their tax issues at www.churchtaxsolutions.com Also visit my blog, www.thetaxdocspot.com. I am listed on Tax Connections at https://www.taxconnections.com/profile/John-Stancil/12258973 Prepare and file your own taxes at www.1040stancilcpa.com

Experience

I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

Organizations
FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

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The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

Education/Credentials
DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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