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Preparing for Taxes

A Working Child Could Still Be Claimed

You may assume that if your child has a job you can no longer claim him or her as a dependent. That may or may not be true: If you provide more than half of your child’s support the child qualifies as a dependent. You can also qualify for a personal exemption as long as the child doesn’t earn more than the value of that exemption (in 2009 the personal exemption was $3,650.) And if your child is a full-time student, the income test doesn’t apply as long as he or she is under age 24. (“Full-time” is defined as attending an educational institution for five months out of the calendar year.)

One other note: “Support” is defined as money spent, not money earned. If your children put all their earnings in the bank, you are considered to provide all of their “support.”