Submitted By: Earl
Answered: August 19, 2016 12:06 pm

My daughter just graduated from high school and is joining the military in a couple of months. She’ll earn more than $4,050 in 2016. Can I still take her as my dependent for this year?

If your daughter will be under age 19 by the end of the year, you probably can claim a dependency exemption for her, even though she is on active duty and has gross income over the exemption amount ($4,050 in 2016). She merely has to have lived with you for more than half the year, but military service is treated as a temporary absence. However, if she’s at least 19 years old by the end of the year, you’re out of luck. At this age, she’s no longer a qualifying child and can’t be claimed as a dependent if her gross income exceeds the exemption amount, which you say it will.

Tax Glossary

Stock option

A right to buy stock at a fixed price.

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