Discussion:"Principal Place of Abode" - College Students
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Discussion Forum Index --> Tax Questions --> "Principal Place of Abode" - College Students
| 13 July 2006 | |
| Sorry if this has been asked before, I tried searcing the archives but found nothing.
Say in 2005, taxpayer's 21-yr old biological child goes away to college for 9-months of the year (taxpayer resides in Hawaii, college is located on the mainland USA). Also assume child has gross income from part-time job over the 2005 exemption amount. Under the new IRC 152, for taxpayer to claim the dependency exemption, the child must be a "qualifying child," as I understand there is no longer a gross income exception for under 24-yr old full time students. So my question is, what is the "principal place of abode"? Does it come down to a facts/circumstances test? (e.g., child habitually comes back home after each semester). Do we look at the child's subjective intent? | |
| 13 July 2006 | |
| Forgot to mention, child must have same "principal place of abode" as taxpayer for more than 1/2 of taxable year. IRC 152 | |
| 13 July 2006 | |
| In the absence of regulations, the Service has informally adopted the head of household "temporary absence" rules. Thus, a student who returns home every summer would appear to have his parent's home as a principal abode. | |
| 13 July 2006 | |
| Regarding student's income: a QC must not provide over half of his own support. Exceeding the exemption amount with income is one factor for a QR - not a QC. | |
| 14 July 2006 | |
| Thanks for the responses. I was thinking about the temporary absence rules, but wasn't sure how they applied. Solomon, thanks for the clarification on that point. | |
