I still live with my parents but plan on leaving soon (I'm an adult), can I file my own taxes if I want to?

Question

I'm a legal adult and + I work full-time. I turned 18 in '05 so I've been an adult for the whole year of 2006. I have a rocky relationship with my parents and plan on leaving soon. They will probably insist that I be claimed as a dependent on their tax returns when they are filed early next year. However, if I want to file my own tax returns and claim independent status, can I? As far as I know, there's no law saying I have to give my p's my W-2s, so if I don't give 'em to my parents, can they still claim me?

Also, why would my parents want to have me claimed as a dependent? What's in it for them, would they not have to pay as much taxes or something?

Answer 1

A lot of it has to do with whether you are in school or not. There are two sets of rules...qualifying child and qualifying relative. Qualifying child requires you to be under 19 at the end of the year, or under 24 if you are a full time student. If you aren't a full time student, skip the next paragraph.

If you are a full time student, then they have to meet these requirements:

- The child must have lived with the parent for more than half the year
- The child must not have provided more than half of their own support. If mom and dad have paid for food, shelter, etc...those all count on their side of the ledger.

If you meet the requirements of a qualifying child, then your parents get the deduction and you don't. You have no say.

If you aren't a full time student, then you fail the age test for qualifying child, and go to qualifying relative. The main test is whether you made $3,300 this year, and whether they paid more than half of your support. If they fail either of those, they cannot claim you.

Answer 2

Your parents can only claim you as a dependent if you are a "Qualifying Child" or a "Qualifying Relative".

If you turned 18 in 2005 it follows that you turned 19 in 2006. It further follows that you cannot be under 19 at the end of 2006. If you are not a full-time student or if you are not permanently and totally disabled, it follows that you cannot be a "Qualifying Child". There are other tests, but if the above is accurate, there is no need to discuss them any further here.

As you are (I assume) not a "Qualifying Child" you may be a "Qualifying Relative". One of the tests there is that your income must not exceed $3,300. If your income does exceed that for 2006, you cannot be a "Qualifying Relative" and your parents cannot, under any circumstances, claim you as a dependent. You are entitled to file and claim an exemption for yourself.

Just to clarify, you do not ever have to give your parents your W-2's. Now that you are over 18, your tax affairs are separate and distinct. You should complete your own return. The only thing to consider, in terms of your "tax" relationship with your parents, is who can claim your exemption. I have attached a couple of links below. Please take the time to read the relevant parts carefully. The information is invaluable. It will also help answer your question if you are, indeed, a full-time student (note that you are not a full-time student if you attend a school that is entirely online or correspondence). You can, of course, always post back here and the resident tax experts (there are a few of us kicking around who are tax professionals) will be happy to help.

If you think you can do your own return (if all you have is a job, you probably can) go to www.irs.gov and click on the FreeFile icon. You can file your tax return at little or no cost online and you will probably be able to file your state return at the same time.

Good luck and I hope things do work out with your parents and you.

Answer 3

Since you'll be 19 at the end of the year, if you are not a full-time student and are not disabled, you aren't a qualifying child for your parents to claim you as a dependent. If you're working full-time, I assume you have made more than $3300 in 2006, so you couldn't be a qualifying relative. So your parents are not allowed to claim you as a dependent for 2006 even if they supported you all year.

If you are working full time, assuming you will make more than $8450 in 2006, you are required to file - it's not an option, or because you WANT to. You will be able to claim an exemption for yourself, and take a standard deduction. If you didn't make over $8450, but had anything withheld for federal income tax, you should file even though you're not required to, to get your money refunded.

This answer does not depend on whether you move out or still live at home with your parents. As of this year, you're past the age where they can claim you as a dependent unless you're a full-time student or disabled, or meet the tests to be a qualifying relative which would include your making under $3300 for the year.

You are correct, you are not required to give your W-2's to your parents. But if they were eligible to claim you, they wouldn't need them anyway, so that doesn't matter.

If they could claim you, yes, they would save money on taxes.

Answer 4

You can claim a dependent if the person meets the criteria as a qualifying child or qualifying relative. These new rules apply for tax years starting in 2005. The old rules for dependents apply for tax years 2004 and earlier.

These rules enable you claim a person as a dependent. A dependent means that the person relies on you for their support. A person can be either independent (supporting themselves) or the dependent of at most one taxpayer. If more than one taxpayer attempts to claim the same person as a dependent, each taxpayer will be audited to determine who is legally entitled to claim the dependent.

Being able to claim a dependent is necessary if you want to take advantage of various child-related tax benefits, including the child tax credit, the earned income credit, the childcare tax credit, and the head of household filing status.

Qualifying Children
To be claimed as a qualifying child, the person must meet four criteria:

Relationship — the person must be your child, step child, adopted child, foster child, brother or sister, or a descendant of one of these (for example, a grandchild or nephew).

You would also have to live and depend on their income for 6+ months out of the tax year.

And what's in for them? Well, before you were 18, a $1000+ child tax credit and depending on how much whoever is claiming you makes about an average of $500 - $1000 in earned income credit.
The earned income credit would be all they would get now since you are 18.

The problem mainly is if they claim you, you cannot claim yourself on your taxes, meaning you will not get as much back.

Anymore questions, just ask =)

Answer 5

If your parents housed and provided the "major" part of your support during the year 2006 they can claim you as a dependant.
Yes this gives them a tax break.
You also HAVE to file for taxes if your income is over a certain amount. This is regardless of who claims you.
Either way you do not have to give your w2 to your parents, you simply check off the box that someone else is claiming you as a dependent. This is the same as my kids have to do.
BTY if your earnings for the year do not amount to much - you still have to fill out a IRS 10xx form, so that you do not screxx yourself later. All taxes paid and income earned accureds over the years towards your Social Surcuity earnings.
ALso if you earned too little you may get it all back.

Answer 6

unless you are a student - full time
once you turn 18 and are working you should be filing your own taxes. they were still able to claim you in 05, but no longer. they cannot claim you as a dependent any longer unless you are a full time student.
Do not hand over your w-2. and yes they get more deductions claiming you.
weather you are living with them or not you need to file your own taxes from now on

Answer 7

As an adult, you need to learn about taxes and deductions. By claiming you as a dependent, your parents get a tax break. If they are audited, they have to prove that they have paid for most of your keep. Since you have received room and board from them, they probably did contribute enough to your keep to claim you as a dependent. However, you will need to file an income tax return separately from them, since you have been working full-time. If you made enough to support yourself and paid for your room and board and other expenses, then your parents would not be able to claim you as a dependent.

Answer 8

well, watch out now. I presume you are not in school now. You might see what you make by filing by yourself. Then ask your parents that if they use you and your w2 to file, that you split the difference (if any) from what they file with you and what you would have filed by yourself. If they file and use you for a dependent and then you file "YOU WILL GET CAUGHT." Anyway, just read in the IRS tax guide and they will explain fully on what you can do. Besides, if you move out and they find they can not use you as a dependent then like I said see if they want to split the difference. But that is if you can trust them to give you the money when or if they get money back.

Answer 9

You can file your own but make sure your parents don't claim you as a dependent. Yes, when they claim you, they don't pay as much taxes.

Answer 10

IF YOU WORK FULL TIME YOU MUST FILE AN INCOME TAX YOURSELF. THEY WOULD HAVE TO PAY MORE THAN HALF OF YOUR LIVING EXPENCES TO BE ABLE TO CLAIM YOU AS A DEPENDENT ON THERE TAXES, THIS INCLUDES RENT, FOOD UTILITIES, PERSONAL CARE ITEMS AND ENTERTAINMENT. THEY DO NOT NEED YOUR W'2S TO CLAIM YOU. THEY ARE NOT CLAIMING YOUR INCOME, YOU HAVE TO CLAIM YOUR OWN INCOME. IF THEY CAN CLAIM YOU (PAID MORE THAN HALF) THEN YOU WILL NOT BE ABLE TO TAKE YOUR OWN PERSONAL STANDARD DEDUCTION, WHICH MAY CAUSE YOU TO OWE THE IRS MORE MONEY THAN WAS DEDUCTED FROM YOUR PAYROLL. YOUR PARENTS CLAIMING YOU WILL DECREASE HOW MUCH MONEY THEY HAVE TO PAY TAXES ON BY ABOUT 4000 DOLLARS DEPENDING ON SEVERAL THINGS IF YOU ARE STILL IN SCHOOL , HOW MUCH MONEY THEY MAKE AND SO ON. MOST CHILDREN WHO LIVE AT HOME BUT HAVE A FULL TIME JOB SHOULD QUALIFY AS CLAIMING THERE SELF UNLESS YOUR PARENTS MAKE ALOT OF MONEY AND SPEND ALOT ON YOU.