Can I Claim My 19-Year-Old Son as a Dependent?
Whether your son still lives at home while he attends school or finds work, sometimes you can claim your 19-year old son as a dependent.
The Australian Taxation Office states that children under the age of 18 remain dependents of their parents for tax purposes. When they reach 18 and above, parents can still claim them as dependents in some circumstances.
Lenders look at dependents differently than the ATO. For tax purposes, taxpayers lower their taxable income through dependents. Those seeking to obtain a mortgage to purchase a home lower their borrowing power when they have several dependents.
The ATO classifies a 19-year-old son as a dependent when:
- He lives with his parents
- Parents provide financial support for clothing, food, and lodging
- Parents cover medical and educational costs
When parents can help their children start adulthood with no debt, it’s a big help. Another way that parents can help their children get a good start is homeownership. Since you own your home, you can use it as leverage for your childrens’ mortgages in a family pledge home loan. The other option is to sign up as a guarantor for their mortgage. Your financial stability increases their childrens’ borrowing capacity and lowers their home loan rates.
Mortgage House is among the lenders that issue family pledge home loans.
Claim Son as a Dependent Conclusion
In some cases, homeowners can claim their 19-year-old son as a dependent. Another option is to help sons become homeowners. Parents can explore family pledge home loans through Mortgage House. Contact our loan specialists today.