Dependent child over the age of 24
I had included my kids as dependents until age 25 but just read the IRS regs which sets the limit for claiming them as exemptions at age 24. I'd like to include them in the economy as 0.6 of an adult until age 25, but exclude them for tax exemption purposes as of age 23.
Any suggestions? Perhaps add a taxable special receipt equal to the exemption amount per person, for age years 24 and 25? That would offset the income reduction of the tax exemption without decreasing the effect of their expenses on discretionary spending.
Perhaps ESP could deal with this automatically? Add a question in dependent definition as to whether they're a full-time student, and drop the exemption at the appropriate age? Maybe make it more sophisticated by asking how long they'll be a student?
Relevant IRS reg: http://goo.gl/AeTEX1