I have a mortg and have always claimed single head of household with 3(me, 2 under 18) exemptions and took standard deduction of $7950. Now 1exmpt turned 18 May 2006, graduated in June and is a freshman in college. She only made 2000.00 this year. Can she file with no exmpts and I still claim her and deduct the expenses of her computer etc.. on my taxes this year and itemize? Need help.
2007-01-15 08:13:21 · 5 answers · asked by Rose 2 in Business & Finance ➔ Taxes ➔ United States
Yes, if she lived with you over half the year and didn't provide more than half of her own support, which with income of $2000 she probably did not. If she was away at school living in a dorm or a student apartment, but your address was still listed as her permanent address, then that time counts as living with you even though she was physically somewhere else.You are correct, she'll file with no exemptions, and you'll get the exemption for her.
Expenses of a computer don't qualify for the educational credits. Tuition and fees do, and possibly a very limited number of other expenses. You will claim the educational credit for her on your return as long as she's your dependent. As a freshmanu' in college, she'd be eligible for the Hope Credit which is usually better than the Lifetime Learning Credit.
Standard deduction this year for head of household is $7550 unless you're age 65 or over, or blind.
2007-01-15 09:35:05 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
There are an incredible amount of variables involved in calculating the best way to handle education expenses (Lifetime Learning Credit, Hope Credit, Tuition Deduction). The answer to your question can vary wildly depending on your circumstances.
In general you may take the approved expenses on your return if the student is your dependent. If she claims herself as a dependent, then she takes the tax benefit on her return.
You should read more about this in IRS Publication 970.
You should also consider talking with someone knowledgeable in these matters who is familiar with your circumstances.
2007-01-15 08:26:41 · answer #2 · answered by CPA 2 · 0⤊ 0⤋
Your question is too confusing, call IRS @ 1-800-829-1040 , sooner the better before they get too busy. Ask them also for the pertainent publications so you unmerstand for yourself. Or see a local IRS office for questions & pubs/forms.
2007-01-15 08:23:36 · answer #3 · answered by Anonymous · 0⤊ 0⤋
If your mother is still supporting you, she gets to claim the exemption for you. You still file for your income. Being a student does not "exempt you."
2016-05-24 07:42:27 · answer #4 · answered by Anonymous · 0⤊ 0⤋
you know in the US you pay up to $30000 for a course in england you get paid to go to college and in university you pay up to $6000 for a course.
you pay way to much for things like education, healthcare and other things that we pay for alltogether in this country!!
try getting a loan
2007-01-15 08:18:14 · answer #5 · answered by Anonymous · 0⤊ 3⤋