I am currently 19 years old, about to turn 20 in November. I am attending college full time so my parents are still allowed to claim me as dependent. Latley we have been having some money issues and I was wondering how much money my parents are getting each year for claiming me as a dependent. They make around 40,000 a year. My parents do not pay for any of my college education. They are expected to pay $1000 each semester but I work an extra job to pay what they are expected to pay and I get nothing in return, I don't even live with my parents in the summer I work in New Mexico all summer at a camp. The most I get from my parents is around 10-20 a month at most for gas or something. I pay for everything else and have 2 jobs...one to help them and 1 to have money for myself...so everyone that commented on this question by telling me to grow up, i have and i have loans....i just start to think i suport my parents more or as much as they suport me.?
2006-09-26 12:52:49 · 10 answers · asked by Ashley M 2 in Business & Finance ➔ Taxes ➔ United States
I believe you get $1500 for a dependent. I wish they were helping you more cause going to college is something I didn't ever get around to... I'm proud of you though. Good luck!
2006-09-26 13:02:09 · answer #1 · answered by ms pokeylope 4 · 1⤊ 1⤋
That is sad...I don't know how much they get for you. I would bet its thousands of dollars off there income so they pay less taxes. My only question is.....Do you pay rent? Do you pay for food in the house? Do you help pay the bills? This cost a lot of money every month. If you would move out you would realize the cost of a person in a house. This should be the best time of your life, you should'nt have to worry about bills. Maybe you should move to a college far away, then they could'nt claim you and you can get the real college experience. I could go both ways on this issue, only because I own my house and see the cost of a house but I would still let my child stay home and not pay anything and really enjoy college. Just my opinion.....
2006-09-26 13:07:54 · answer #2 · answered by Anonymous · 2⤊ 1⤋
If you are a full time student under the age of 24 your parents are allowed to take you as a dependent. YOU ARE NOT PERMITTED TO TAKE YOURSELF AS AD DEPENDENT, even if you make a $1,000,000 a year.
As a dependent they get a whole $3,300 deduction for you (about $330-$495 in tax savings to them).
No child tax credit, because you are over 17
No child care credit, because you are oer 13
They may be able to use the tuition that is paid in cash or by loans under the Hope or Lifetime learning Credits and get some tax savings $1000 to $1500, if they have an income tax. These are non refundable credits.
Now the next question is what are you costing them?
How much do you pay them for storage of your personal belongs at their house?
How much do you pay them for coverge under their health & medical policies? Single male is $300 per month.
It is your choice to work at the summer camp rather then live at home, not theirs. You made the decision. You want them to support you for the rest of your life too?
Your parents owe you NOTHING, they gave you LIFE. They supported you for 18 years when you never paid rent or chipped in for your part of the electric, telephone, heating, cable, insurance, real estate taxes, mortgage payment, food, clothes, toys or anything else you got from them.
You can always quit college and live at home, claim yourself as a dependent and work at Burger King, they are looking for a few good life time career burger makers.
2006-09-26 17:01:01 · answer #3 · answered by dillon Y 3 · 0⤊ 1⤋
For each dependent, your parents can subtract $3,300 from the amount of income on which they pay tax. So if their tax rate is 15%, they save 15% of $3,300, which is $495. If they're in the 33% bracket, they save about $1,100.
They also get a tax credit of $1,000 (in addition to the tax savings mentioned above).
HOWEVER (and it's a big however), if their taxable income is more than a certain amount, both of the above numbers decreases, and the more they earn, the smaller the tax savings and tax credit become.
So, theoretically, the tax savings from having a dependent child could be over $2,000, or they could be very little.
But regardless of what the tax savings turn out to be, they will never be as large as what parents spend on a child. And no matter how much parents spend on a child, it is never as great as the benefits parents receive from the joy of having a relationship with a child.
Hope that is helpful to you.
2006-09-26 13:08:18 · answer #4 · answered by actuator 5 · 1⤊ 1⤋
I'm not a tax expert but the question should not be how much money the parents get, but to how much you lose by working two jobs and not being able to claim yourself. There is also the question to the possibility of being eligible for earned income credit. So, add the amount they save to the amount you are giving up by not claiming yourself to get a more realistic answer.
2006-09-26 14:55:38 · answer #5 · answered by ydontino 1 · 1⤊ 0⤋
If your parents are not providing more that $10 to $20 per month toward your support, they can't legally claim you as a dependent. The personal exemption for each dependent was $3200 in 2005.
The fifth test is the support test. To claim a dependency exemption for a person as your qualifying relative, you generally must provide more than half of that person's total support during the calendar year in which your tax year begins. Special rules apply to multiple support agreements and to children of divorced or separated parents, or to children of parents who have lived apart at all time during the last six months of the year. Refer to Publication 501, Exemptions, Standard Deduction, and Filing Information for more information.
2006-09-26 13:19:03 · answer #6 · answered by STEVEN F 7 · 2⤊ 1⤋
They probably get 15% of the dependent exemption of $3200, which would be $480. They don't get the child credit for you - you're too old.
They're not allowed to claim you as a dependent even if you are a college student if they're not providing more than half your support. You say you don't live with them during the summer - do you live with them during the school year? If so, maybe they are providing half your support, but it doesn't really sound like it.
Assuming you're not a parent yourself, you're not old enough to be eligible for the earned income credit.
2006-09-26 15:18:34 · answer #7 · answered by Judy 7 · 0⤊ 2⤋
If you live with them while attending school they can claim you as a dependent on their taxes which, at $40,000 a year, is not much of a tax break. They cannot claim you as a student though, you can do that on your own tax forms. Unless, that is, you pay rent to your parents for living with them.
2006-09-26 13:02:35 · answer #8 · answered by zhadowlord 3 · 1⤊ 1⤋
it isn't a lot a remember of "getting" funds yet getting their funds lower back. you could look contained in the tax coaching e book for the Earned income credit yet, truly, this question gained't help clean up the project. if you're battling about funds, telling them that "get" $2000 a three hundred and sixty 5 days for claiming you'll merely gas their opt to "prepare" you responsibilty by depriving you of even better funds. if you're looking for a litlle better to assist them...they could declare the academic paid as a tax credit. wish this facilitates.
2016-12-02 03:20:52 · answer #9 · answered by Anonymous · 0⤊ 0⤋
why don't you just pay all your own expenses all year and then tell them you are going to claim your self as a dependent and be done with it. Now if you really support yourself thats is what you should do. However if mom and dad are giving you gasoline money and sanack money and bying clothes for you and buying food for you and buying clothes for you then you should keep your mouth shut until you can pay all your own bills and be grateful for your parents.
2006-09-26 13:05:32 · answer #10 · answered by roy40372 6 · 0⤊ 2⤋