Can I Claim My 22 Year-Old Child as a Dependent?
When the Australian economy experiences stress, the effects impact the population. In 2022, children will move out of their parents’ homes later. Some children remain at home until the age of 24 to lower the expenses related to their education. Others stay at home while they search for gainful employment.
Therefore, you can claim your 22-year-old child as a dependent in many cases.
The Australian Tax Office states that the age cut off for a dependent remains 18 years old. However, they make exceptions to the rule too.
For example, parents who have children living at home automatically can claim them as dependents. If you provide them with food and clothes too, it strengthens your case. Helping children over the age of 18 pay for their living, medical, and education expenses means that they depend on you.
For tax purposes, dependents lower your taxable income. For mortgage application purposes, dependents lower your borrowing capacity. The Australian government helps young Australians become homeowners sooner rather than later. Once they accrue debt and start their families, obtaining a home loan becomes more challenging.
Homebuyers who have dependents can explore their options with Mortgage House. Our loan specialists have tools that help them evaluate applications promptly and find potential loan terms for the Australian housing market.
Claim Child as a Dependent Conclusion
In some cases, you can claim your 22-year-old child as a dependent according to ATO rules. Dependents do impact your borrowing power when you seek to finance a home purchase. Parents who want to help their children become homeowners can explore family pledge mortgages through Mortgage House. Contact our loan specialists today.