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-   -   Independent or dependent? (https://www.askmehelpdesk.com/showthread.php?t=172891)

  • Jan 15, 2008, 09:18 PM
    sreeve115
    Independent or dependent?
    "Hi, I am a 19 year old high school graduate. I currently work 40 hours
    A week and am notin school yet. My father told me that when
    I file my taxes to be sure that I file as a dependent so that he can get money, but then when I file as a dependent, I owe
    Money. Am I able to file independently and get my tax refund even if I
    Live with my parents? Thank you for your help!"
  • Jan 15, 2008, 09:35 PM
    twinkiedooter
    How much money did you make in 2007? That is the determining factor if your parents can claim you or not. If you made too much for them to claim you, then you can file separately even though you live with them. Be sure they don't claim you and you file also as that will cause problems.
  • Jan 15, 2008, 09:53 PM
    AtlantaTaxExpert
    Sreeve115:

    First, if you attended high school for at least five months in 2007, your parents can STILL claim you as a dependent regardless of your income level.

    Now, you have the IRREVOCABLE right to claim yourself on your tax return. However, your $3,400 personal exemption is worth MORE to your parents than it is to you.

    Here is what I recommend: Prepare the return BOTH ways and show it to your Dad. Then politely suggest that if he writes a check for the difference between the two returns, you will file the return WITHOUT claiming your own exemption. That way, you BOTH win!

    That is how I handle it with my adult children who are still in college, and that is what I normally recommend for clients with chidlren in similar circumstances.
  • Jan 16, 2008, 02:50 AM
    MukatA
    If sreeve115's parents can claim him dependent, then sreeve115 can't claim personal exemption. Else both will get letters from the IRS and one of them will have to amend the tax return.

    For the parents the requirements are:
    The child must have lived with you for more than half of the year.
    The child must not have provided more than half of his or her own support for the year.
  • Jan 16, 2008, 10:58 AM
    AtlantaTaxExpert
    MukatA:

    FYI. If the dependent is a child, there is NO REQUIREMENT that the child lives with the parents, as long as they provide over half of his/her support.

    The reverse applies as well. If the child claims the parents as dependents (happens all the time when the parents retire with Social Security as the ONLY source of income and the child helps the parents financially to get by), the child can claim his parents as dependents WITHOUT the parents living with the child.

    In fact, the parents do not even have to be located in the same state or country (but they DO have to retain their U.S. citizenship).

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