I just graduated college last May and have been working a full time job ever since. I have been living at home, however I have been paying my mom rent, buying my own food, and have my own insurance benefits. In my mind, I have been completely financially independent ever since that diploma was handed to me and have been claiming "1" on my W-2. After working for 7 months, my annual gross income came out to a little over $28k (15% tax bracket) and I payed a little over $4500 in federal income taxes. If my mom ends up claiming me as a dependent, am I going to end up having to pay the IRS more money instead of expecting a refund? Any help would be GREATLY appreciated as I am no banker.
2007-03-27 14:23:20 · 6 answers · asked by David G 2 in Business & Finance ➔ Taxes ➔ United States
To answer CarVolunteer's question, for the last 7 months she has NOT provided me with food, clothing, nor insurance. I still live here, however I have been paying her a monthly rent check. I have my own insurance benefits through my employer; my benefits with her expired upon graduation in May 2006.
2007-03-28 02:53:54 · update #1
I am an accountant.
What you claim on your W-4 form that determines your W-2, has little bearing on your tax return at the end of the year. Meaning that NO you are not in trouble with the IRS.
Now if this is the year that you JUST graduated, in 2006 then, maybe, it would be more beneficial to let mom claim you, But, if you graduated in 2005, she should not.
Tip, if you file your taxes before she does. Then she will not know it, but the IRS will not allow her to claim you on her return, but she will not find out for a while. Whether she checks the box off or not.
If you had the money to go to the same accountant, then that accountant, would explain to her and you , wheather it really helps her or not to cliam you.
Some people think just because they cliam you that they will get money back. That is not always the case.
The rule is, though, if your mom pays more than 50% of your living expenses, she might, Might be able to claim you. This is usually only if you were ill or in school.
Good luck with this one. Race her to the H&R block next year.
2007-03-27 16:51:50 · answer #1 · answered by Chris 3 · 0⤊ 0⤋
You meet the residence and school attendance (if you were a full time student) rules for your mother to claim you, regardless of your income. There is the question of support. For the last 7 months of the year she is providing room, not food, clothing, insurance. What is the fair market value of the room? Any other services such as laundry? Who paid your expenses the 1st 5 months?
Your taxes as her dependent would be less than $4000, so don't worry about owing for 2006.
2007-03-27 16:16:37 · answer #2 · answered by CarVolunteer 6 · 0⤊ 0⤋
locate out from H&R block the form you will possibly circulate approximately making a criticism to the IRS and it will take a protracted time to repair, yet she would be in a position to get into some hassle for claiming your daughter. i be attentive to someone that grow to be on your project and the guy that don't have claimed the youngster had to pay it lower back to the IRS.
2016-10-20 02:31:53 · answer #3 · answered by Anonymous · 0⤊ 0⤋
My understanding is that she CAN'T claim you if you've graduated, have a job and your own insurance. Check w/ a Tax specialist-- or maybe even the HR person at your job. File your own claim! Sounds like you'll get a hefty refund...
2007-03-27 14:30:03 · answer #4 · answered by luchadore 3 · 0⤊ 1⤋
It sounds like you probably provided over half of your own support for 2006, so your mom would not be allowed to claim you.
2007-03-27 17:44:24 · answer #5 · answered by Judy 7 · 0⤊ 0⤋
I think if they claim you then they have to take you income in to theirs. In that regard you wouldn't gain nor lose.
2007-03-27 14:33:59 · answer #6 · answered by Christina B 1 · 0⤊ 1⤋