My sister is 25 years old and attending grad school full time. She has been living at home for about 3 years since finishing her undergraduate studies. Her income last year was reported about a little over $3,000. The previous year tax preparer told my parents that she could not be claimed as a dependent once she is over 24 years old. We went to a different tax preparer this year and my parents were told she could still be considered as a dependent because she is a student with a low income. Who is correct?
2007-02-14 17:43:48 · 5 answers · asked by Kalyfornia 2 in Business & Finance ➔ Taxes ➔ United States
in the past, once a person was 24 yrs old they could no longer be considered a dependent. however, now rules are different. your sister can be considered a dependent because she is a "qualifed relative." if your sister lived with your parents and they provided over 50% of her support and her gross income was less than $3,300 they can claim her as a dependent.
check to see if her income meets this requirement.
2007-02-14 17:59:38 · answer #1 · answered by tma 6 · 0⤊ 1⤋
The second preparer is correct. The rules changed a couple of years ago, but were the same last year as this year.
There are two kinds of dependents, qualifying children and qualifying relatives. A qualifying child must be under 24 to be claimed as a dependent if they're a full-time student, and under 19 if they aren't, unless they are permanently and totally disabled. So this person was not a qualifying child.
If she made under $3300 in 2006, and if her parents provided over half of her total support for the year, they can claim her as a dependent as a qualifying relative. If she made $3300 or more, then they couldn't claim her.
The income limit for 2005 was $3200, so if she made more than that in 2005, then the first preparer was correct in 2005. This limit usually increases a little every year.
2007-02-14 18:13:18 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
announcing your mom and father "can" is a sturdy word. Your mom and father are no longer "allowed" to declare you as a based in accordance to tax regulation. you will could be the two (a million) a qualifying infant (yet you're no longer a qualifying infant given which you weren't an entire-time pupil for area of 5 months in the process the three hundred and sixty 5 days), or (2) a qualifying relative (that may not paintings via fact a qualifying relative can't earn greater beneficial than $3,650). whether, people who do no longer qualify to declare exemptions for dependents do it each and all of the time. it is sorta like announcing you "won't be in a position to" power over 70 on a parkway provided that's the fee cut back. Yeah, you cancontinual over 70, human beings do it each and all of the time. and you may get caught and thrown interior the pokey. it will make 0 difference to you. in the event that they claimed you, why complication approximately it? They pay much less in tax. in the event that they get audited they're going to could pay it back.
2016-10-02 04:11:39 · answer #3 · answered by Anonymous · 0⤊ 0⤋
If her income is LESS than $3,300, she might qualify as a dependent.
2007-02-14 23:01:20 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Hi !!!
The last person, I believe is the correct one. Being a student, does have it's advantages.
But they should call the IRS Dept. and make informed themselves from their main source.
This way they will be completely sure.
GOD BLESS YOU & HAPPY LIFE
A.Z.
2007-02-14 17:57:37 · answer #5 · answered by Alliv Z 4 · 1⤊ 2⤋