College Senior Year, Dependents and Tax Credits

My husband and I support 100% of the expenses for my brother, including his college tuition. We have been claiming him as our dependent for the past years. He graduated from college in May 2004. He had his 24th birthday by the end of 2003. He found a job after graduation for which he get paid about $9k in 2004.

I have 2 related questions -
1.Can I still claim him as my dependant now that he is over 24 in his last year of college and he has a job after graduation?
2. How I get tax credit for his last semster's tuition?

Thank you for your thoughts.

Janewj98,

Your brother is fortunate to have his sister and brother-in-law support him in this fashion.

You can not claim your brother as a dependent on your 2004 tax return because he fails the income test.

Your brother could take the education deduction, or lifetime learning credit on his tax return. Even when you pay the education expenses directly to the school, your brother can take the deduction or credit. It is as though you gave the money to your brother, and he paid the school.