My daughter is 26, just finished community college, and is living at home with me until she gets a job. Can I still claim her as a dependent? State: VA if that matters.
Both rules are required to be met and are designed to award the dependent to one and only taxpayer. Under the qualifying child rules, the child must live with you for more than half the year. Under the qualifying relative rules, the taxpayer must provide more than half of the dependent's total support. Thus if your daughter lives with you for more than half the year and you provide more than 50% of her support, then you should be safe claiming her as a dependent.
If your child is disabled or incompetent and the child lives in your home for over half a year and you pay more than 50 percent of his/her support you can deduct the 26 year old as a dependent. If you child is not disabled or incompetent and is freeloading that is a can of different worms. Idleness is a slippery slope when it comes to deductions for children who have not left home and are sound of mind and able bodied.