Who Qualifies As A Dependent: University Students' Status Explained

Whether a university student is a dependant or not depends on the context. In the context of taxes, a university student can be a dependant if they meet certain criteria. For example, in the US, a university student can be claimed as a dependent on taxes if they are under the age of 24 and a full-time student for at least five months of the year. In Canada, the Canada Revenue Agency (CRA) defines a dependant as someone who relies on another, especially a family member, for financial support, and this can include university students. However, the CRA does not consider a university student as a dependant if they are over the age of 18 and do not have a physical or mental impairment, even if their parent provides all their necessities. On the other hand, in the context of student finance, a university student with dependent children or adult dependants may be eligible for additional grants and support.

University students as dependants for tax purposes

The definition of a "dependant" is "a person who relies on another—especially a family member—for financial support". Dependants are typically under the age of 18, but a person over 18 with a disability can also be considered a dependant. In the context of tax, a dependant is someone who relies on you for care and support on a daily basis. This can include children, parents, grandparents, siblings, and other relatives.

In Canada, the Canada Revenue Agency (CRA) defines a dependant similarly but varies for each credit available. For instance, the eligible dependant amount tax credit applies to single-parent families supporting a dependant who lives with them, including children, parents, grandparents, and siblings under 18 (or older if impaired). The Canada Caregiver Credit is available to those who maintain a home for a disabled or elderly relative over 18, who is reliant on the caregiver due to a physical or mental impairment.

In the United States, the Internal Revenue Service (IRS) allows parents to claim their college student children as dependents on their tax returns if certain criteria are met. The student must be a qualifying child or qualifying relative, be younger than the taxpayer, and be under the age of 24 and a full-time student for at least five months of the year. Additionally, the student must have lived with the taxpayer for more than half of the tax year and not provide more than half of their own financial support.

It is important to note that the rules and regulations regarding dependants and tax credits may vary by country and specific credits or deductions being claimed. Therefore, it is always advisable to refer to the relevant government or tax authority for the most accurate and up-to-date information.

Dependants' grants for full-time students

A dependant is generally defined as "a person who relies on another, especially a family member, for financial support". Dependants can include children, grandchildren, siblings, parents, and grandparents. In some cases, a dependent can also be a spouse.

Full-time students with dependants may be eligible for various grants and financial support to help with the costs of their education. Here are some of the grants available:

Childcare Grant (CCG)

The Childcare Grant is available for students with dependent children to help with course-related costs and childcare expenses. The grant is paid in addition to the main student finance and usually does not need to be paid back. The amount provided can be up to £342.24 per week for two or more children or up to 85% of weekly costs, whichever is less. It is important to note that students who receive the childcare element of Working Tax Credit or Universal Credit, or Tax-Free Childcare from HM Revenue & Customs, are not eligible for this grant.

Parents' Learning Allowance (PLA)

The Parents' Learning Allowance is another source of financial support for students with dependent children. It helps parents with course-related costs and can be up to £331.95 per week for two or more children or up to 85% of weekly costs, whichever is less.

Adult Dependants' Grant (ADG)

The Adult Dependants' Grant is available for students who have a partner or another adult who depends on them financially. The maximum amount provided depends on the income of the student and the dependent adult. For full-time undergraduate or postgraduate students in England, the maximum ADG is up to £3,438 per year. This grant is usually paid in three instalments directly into the student's bank account and does not need to be repaid unless there has been an overpayment or the student leaves the course early.

It is important to note that eligibility criteria and grant amounts may vary depending on the country and specific programs offered by educational institutions. Students should refer to the relevant government or institutional websites for detailed and up-to-date information on dependants' grants for full-time students.

Who qualifies as a dependant?

A "dependant" is defined as "a person who relies on another, especially a family member, for financial support". Dependants are typically under the age of 18, but a person over the age of 18 with a disability can also be a dependant. The Canada Revenue Agency's (CRA) definition of a dependant is similar but can vary for each credit available. For instance, the CRA doesn't view a university student as a dependant unless they suffer from a physical or mental impairment.

In the US, a parent can claim their college student children as dependents on their tax returns. However, the student must be younger than the taxpayer, under the age of 24, and a full-time student for at least five months of the year. They must also live with the taxpayer for more than half of the tax year and not provide more than half of their own support.

In the UK, students with children or an adult dependant can get extra help in the form of a Childcare Grant, Parents' Learning Allowance, or Adult Dependants' Grant. However, it is unclear whether a university student can be claimed as a dependant in the UK.

How to claim a dependant

A dependant is defined as "a person who relies on another, especially a family member, for financial support". Dependants can include children, grandchildren, siblings, parents, and grandparents. The requirements for claiming a dependant vary depending on the credit or deduction you want to claim. Here are the steps on how to claim a dependant:

Determine Eligibility:

First, determine if the person you want to claim meets the eligibility requirements for a dependant. The requirements can vary by country, so make sure to check the specific rules for your location. In general, a dependant is someone who relies on you for financial and physical support and lives with you.

Gather Documentation:

You will need to provide documentation to support your claim. This may include birth certificates, adoption records, or other legal documents that prove the relationship between you and the dependant. You may also need to provide evidence of the dependant's income, as they cannot provide more than half of their own annual support.

Complete the Necessary Forms:

The specific forms you need to complete will depend on your country and the type of credit or deduction you are claiming. For example, in Canada, you may need to fill out the Canada Caregiver Credit form, while in the US, you would need to refer to the IRS guidelines and forms. Make sure to carefully review the requirements and complete all necessary paperwork accurately.

Submit Your Claim:

Submit your claim, along with any required documentation, to the appropriate government agency or tax authority. Again, the specific process will depend on your country and the type of credit or deduction you are claiming. Make sure to keep copies of all your submitted documents for your records.

Stay Informed:

After submitting your claim, stay informed about its status. You may need to provide additional information or documentation, and it's important to respond to any requests from the relevant authorities promptly. Remember that the process can take time, and you may not receive an immediate response.

It's important to note that the above steps provide a general guide, and the specific process for claiming a dependant can vary depending on your country and individual circumstances. Be sure to consult official government sources or seek professional advice for the most accurate and up-to-date information.

Non-refundable tax credits for dependants

In general, a dependant is defined as "a person who relies on another, especially a family member, for financial support". Dependants can include children, grandchildren, siblings, parents, and grandparents. The Canada Revenue Agency's (CRA) definition of a dependant is similar but can vary for each credit available. For instance, the CRA does not consider a university student as a dependant unless they suffer from a physical or mental impairment.

Non-refundable tax credits are those that cannot be used to increase your tax refund or to create a tax refund when you wouldn't already have one. In other words, your savings cannot exceed the amount of tax you owe. For example, if you are eligible for a $500 Child and Dependent Care Credit, but the tax you owe is only $200—the $300 excess is non-refundable. This means that the credit will eliminate the entire $200 of tax, but you will not receive a tax refund for the remaining $300.

The Child and Dependent Care Credit is one of the many non-refundable tax credits available. Usually, you can only claim expenses for children under the age of 16, but there is no age limit if your child has a physical or mental impairment. If you are a single parent, you may be able to claim one of your children under 18 years of age, or one deemed a dependant due to mental or physical impairment, under the Amount for an Eligible Dependant. The Amount for an Eligible Dependant is sometimes also known as the Equivalent to Spouse credit. This credit is unique in that your eligible dependant doesn't have to be your child. Other relatives, like your parents, grandparents, grandchildren, and siblings may qualify if they live with you and are supported by you.

The American Opportunity Tax Credit is another example of a non-refundable tax credit. It is for qualified education expenses paid by or on behalf of an eligible student for the first four years of higher education. It is partially refundable, meaning that if the credit reduces the amount of tax a taxpayer owes to zero, they can get a refund of 40% of any remaining amount of the credit, up to $1,000. Taxpayers can get a maximum annual credit of $2,500 per eligible student.

Other non-refundable tax credits include the Earned Income Tax Credit (EITC), the Premium Tax Credit for health insurance (PTC), and the refundable portion of the Child Tax Credit (CTC), also known as the Additional Child Tax Credit (ACTC).

Frequently asked questions