I paid about $15k for my sister college fee and about $5k for her living expenses. She made around $10k with her internship. Can I claim her as dependent and can I show these expenses in my tax returns? What will be the approximate savings I can get from this.
If your sister meets the requirements to be your "qualifying child" then you may be able to claim a dependency exemption for her and thus claim the other tax benefits that go with this, including the education credits. If she does not qualify as your "qualifying child" and would otherwise qualify as a "qualifying relative" then you would not be able to claim her as a dependent because her income exceeded $4,050.
You should review IRS Publication 501, starting on Page 11 for more information. You may find the chart on page 12 to be helpful. You can find the publication here: https://www.irs.gov/pub/irs-pdf/p501.pdf
Please note this information is general in nature and based solely on the information you have provided. This does not constitute specific legal advice.
Your sister may be your dependent if she lived with you, you paid more than half of her support, and you paid more than half the cost of keeping up the home, and she had income under $4050. Your savings would be your tax bracket percent times $4050. Possible you can take credit for her college fees. Please make an appointment with an H&R Block office ASAP, and bring all your documentation, including documents that show that your sister lived with you during the year.
This response is a general one, and does not constitute legal advice. There is no attorney client relationship absent a written agreement.
Our Rating is calculated using information the lawyer has included on their profile in addition to the information we collect from state bar associations and other organizations that license legal professionals. Attorneys who claim their profiles and provide Avvo with more information tend to have a higher rating than those who do not.What determines Avvo Rating?Experience & background
Years licensed, work experience, educationLegal community recognition
Peer endorsements, associations, awardsLegal thought leadership
Publications, speaking engagementsDiscipline