Is it better to claim your son as a dependent eventhough he obtained 70% of support from parents (filed jointly married) and lived with us for 8 months? He is in his 3rd year in college and wants to get as much financial aid as possible. He has not worked for the last 3 years and have not filed taxes in the past. Parents income went up 20K from 2005 to 2006. For 2005-2006 school year, my son has received grant which would take care of the current school year. He wants to pursue a graduate degree and obtain more finanancial aid in the future. If I include him as a dependent, it reduces our taxes by $490 only. Thanks!
2007-02-22 10:03:27 · 4 answers · asked by D J 2 in Business & Finance ➔ Taxes ➔ United States
For 2007, my estimates are that I will contribute less than 30% of my income for his expenses.
2007-02-22 11:00:33 · update #1
Yes, by including him on your return you will owe $490 less than you would have.
In addition to the standard dependent deduction have you looked at other areas (college room and board, medical care, etc.) for which you can claim an addition deductions?
If the grant covers the tuition in 2007, will you still be contributing more than 51% of his support - food, clothing, medical, housing, etc.? If so, you can claim him as a dependent on the '07 return.
2007-02-22 10:16:46 · answer #1 · answered by PALADIN 4 · 0⤊ 0⤋
If the bigger focus is for him to receive as much financial aid as possible, it's better to have him file on his own and do not claim him as a dependent. This way, he'll be put into a very low income tax bracket, and will qualify for a greater amount of financial aid.
2007-02-22 10:22:57 · answer #2 · answered by illinibub 2 · 0⤊ 0⤋
If he's not any longer a student or disabled, you could declare him below the Qualifying Relative rule see you later as his gross earnings became below $3,650 and also you presented extra that 0.5 of his finished help for the entire year. can not say if this can earnings you in any respect without understanding all of your own monetary tax information. one element is convinced notwithstanding: He gained't qualify you for the EIC, baby Tax credit or further baby Tax credit.
2016-12-04 19:42:25 · answer #3 · answered by ? 4 · 0⤊ 0⤋
The only way to NOT have him be your dependent for FAFSA purposes is for him to get married or have a dependent of his own (like get a girl pg. - bad plan). DH & I had to plan our wedding to coincide w/ the preferred FAFSA filing deadline, so I have exp. this 1st hand. We went to a JP to get hitched in Mar, so we could file our FAFSA by Apr 1, then had a "big church wedding" in summer.
2007-02-22 10:52:18 · answer #4 · answered by Tom's Mom 4 · 0⤊ 1⤋