I'm working on filing my federal taxes. In 2006, I have a summer job in which I brought in about $5,885, as well as a job on campus (exempt from FICA) that brought in $1025. I also earned $108 in interest income (1099-INT) from my bank.
My total federal withholding for the year was $458. I was looking into using H&R Block's tax program to do my taxes...but when I check the box "I can be claimed as a dependent", it knocks my return from $458 to $271. Why? Is there anything I can do?
2007-02-07 06:45:22 · 8 answers · asked by bjoak 1 in Business & Finance ➔ Taxes ➔ United States
That's the way it is and there is nothing you can do. If your parents declare you as a dependent then they get a tax break, and you, by definition, are special case of the "Single taxpayer" case with zero exemptions.
The kicker is that IF your parents make too much money (above 150K gross), then they probably get no tax break with you as a dependent anyway, and they are better off not even claiming you.
If they are getting the break, ask them for some of the money...say 1/2 of the difference. It's only fair!
.
2007-02-07 06:50:12 · answer #1 · answered by non_apologetic_american 4 · 1⤊ 1⤋
The reason your taxes go down is because someone else was footing the bill for your support. Your parents were the ones putting a roof over your head, clothes on your back, food on the table, and I'm guessing they're also the ones paying for you to go to college. So your parents are the ones that should rightfully get the extra deduction for all the extra money they paid for supporting you.
To answer your second question: No, there is nothing you can do. Be happy with $271.00 and be thankful that you ARE getting something back -- many people will be owing the Federal Government this year. And DO NOT try to say you can't be claimed as a dependent because you'll be audited faster than you can say IRS. If that happens, not only will you not get the $271.00 you're entitled to, you may end up paying a hefty fine for filing a fraudulent return.
2007-02-07 14:53:09 · answer #2 · answered by sarge927 7 · 0⤊ 1⤋
The standard deduction for a single person living on their own gives you the 458. However if you are claimed as a dependant, then whoever is claiming you is receiving that standard deduction. The IRS doesn't allow two people to claim the same deduction.
2007-02-07 14:51:30 · answer #3 · answered by Danny J 1 · 1⤊ 1⤋
No, it's because you can't claim yourself as a dependant (exemption actually) when someone else can claim you. Just how it goes with students. Sorry about that! We all went through it!
2007-02-07 14:53:00 · answer #4 · answered by miketorse 5 · 0⤊ 0⤋
Because the IRS will treat you as if you were claimed as a dependent if you could be claimed as a dependent, even if your parents elected not to claim you as a dependent.
2007-02-07 15:28:02 · answer #5 · answered by jseah114 6 · 0⤊ 0⤋
You lose the exemption for claiming yourself. Since your parents are saving taxes you can complain to them and hope they give you some part of what they saved.
2007-02-07 14:48:45 · answer #6 · answered by spicertax 5 · 1⤊ 0⤋
Because your parents get the deduction. IRS won't give two deductions for one person. Doesn't make sense.
2007-02-07 14:53:01 · answer #7 · answered by jennifer74781 4 · 0⤊ 0⤋
your refund drops because the person who claims you
gets a deduction
2007-02-07 20:11:49 · answer #8 · answered by jojo 3 · 0⤊ 0⤋