<p>D is a recipient of a Fulbright grant and is now in Germany thru 6/2009. She then has a job waiting for her which will start 9/2009. </p>
<p>We are trying to determine whether we can still claim her as a dependent in 2009. As a Fulbright recipient she is entitled to extend her student status for a year. In addition, the medical insurance she receives through the program is designed only to supplement and not replace her current plan (under my husband and I). This says to me that since we need to cover her insurance thru 8/2009 and since she is still considered a student, then we can legitimately cover her as a dependent, despite the fact that the Fulbright is covering most of her living expenses from Jan thru June (ie. rent, food, etc).</p>
<p>Does anyone have any experience with this .. or comments on my logic??</p>
<p>Thanks</p>
<p>Hey, congrats.</p>
<p>Makes sense. But the craveat is that dependency for tax purposes is for the entire year even though your insurance may cover only part of the year. </p>
<p>For instance, DS Stafford Loan interest is not deductible to him as long as he is dependent for any part of a year. We made sure that he became independent before Dec 31. The savings in medical insurance cost to us, and tax savings to him was such that it was advantageous for him to be liberated, even when he had to buy his own med ins. Take no advice from me, disclaimer. </p>
<p>Our DS is in Potsdam as an assistant to a visiting prof. Says eating is cheap. He's hitting the rails of Berlin. So many kilometers to ride and so little time.</p>
<p>Assuming that Fulbright recipients are indeed considered students per your post, your D will be a dependent in 2009. She only needs to be a full-time student for five months to qualify and her Fulbright will be for more than five months in 2009.</p>
<p>Other considerations - Will she be under age 24 in all of 2009? If not, her 2009 gross income must be less than the 2009 exemption amount ($3650) to qualify as your dependent. If under age 24, the gross income test is ignored and she can have unlimited gross income and still qualify as your dependent.</p>