Q: My mother in law has taken her 19 year-old grandson on as a dependent. He is enrolled full-time in college and is not living with her. I thought dependents had to be under the same roof.
Cathy
A: In order for someone to be a dependent, they either have to be a "qualifying child" or a "qualifying relative." In this case, the grandson is a "qualifying child"--he's a blood relative, is under age 24 and a full-time student, has lived with her for a majority of the year (being away at college is only temporarily away from home), and she provides a majority of his support. Assuming he's a citizen and doesn't file a joint return, it sounds kosher to me. In case you're wondering about any income limits on his part, they don't exist for dependency purposes provided he is a full-time student.
As her dependent, she is able to claim a deduction of $3400 on her 2007 tax return. If she paid any tuition and fees for him, she can deduct those, as well (if eligible). For all intents and purposes, the tax code treats him as part of her household.
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