So confused about taxes and dependent status for grad school daughter receiving stipend - can anyone help?

complicated.
but here are the few take aways from our grad student

  1. we did not declare her on our taxes
  2. grad students are NOT eligible for AOTC or PELL even though they are independent. I think we took AOTC on her a few years in undergrad.
  3. We did not fill out the FAFSA; she filled out FAFSA and did borrow grad student loans - max amount but not plus. Her school gave her a small grant based on her finances.
  4. she has a job!!! but is still on our cheaper insurance

sounds like you’re worried about kiddie tax mostly. Just want to say, in the whole scheme of things, it’s all going to turn out fine. Your daughter doesnt have monstrous loans!

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