Is Your Child a Full-Time Student?If you have a qualified child
you can claim an exemption for that child on your tax return,
which results in a $3,800 deduction for 2012 (up from $3,700 in
2011). Depending upon your tax bracket, that deduction can
produce a substantial tax savings. To be treated as a qualified
child, a child must be under the age of 19 or a full-time
student under the age of 24. Generally, children under the age
of 19 who have investment income, such as interest and
dividends, are also subject to the so-called “kiddie tax,”
which, except for small amounts, causes the child’s income to be
taxed at the parent’s marginal rates. The “kiddie tax” was
implemented several years ago to curtail parents from shifting
income to a child to take advantage of the child’s lower tax
rates. Full-time students under the age of 24 who are not self-
supporting are also subject to the “kiddie tax” rules. So what
is the definition of a full-time student? Well, the tax law
definition is more liberal than you might