I go to college and my parents are paying for most of my education expenses including tuition, board, living costs, and allowances.
If they claim me as a dependent, do I need pay income tax on the money they gave me? Are there deductions possible?
2007-04-01 07:43:22 · 6 answers · asked by blastradii 1 in Business & Finance ➔ Taxes ➔ United States
No, you are their dependent and they get all the deductions. You don't file on anything you get from them, only on income from other sources. And if they supply more than half of your support, you can't claim the deductions on the income you do file on - they get it if they want it.
2007-04-01 07:51:43 · answer #1 · answered by Mike1942f 7 · 0⤊ 0⤋
NO.
If you are in college, being claimed as a dependent by your parents and not doing any part-time employment or conducting a business which generates income for you then you do not have to file a tax return.
Your parents support is not considered income.
If you receive income from other sources then you should file a tax return. Depending on the source of this "other income" you may or may not have deductions.
2007-04-01 08:05:26 · answer #2 · answered by Anonymous · 0⤊ 0⤋
No, you don't pay taxes on money given to you as a gift from your parents. If they can claim you as a dependent, then they get any education credits that are available, you don't get them yourself. There are deductions or credits available for tuition and fees, not for living expenses.
If you had over $5150 income from a job, you'd have to file also, and pay taxes.
2007-04-01 09:37:19 · answer #3 · answered by Judy 7 · 1⤊ 0⤋
Money you received from your parents for your support is not taxable income.
Since you are a dependent, do not claim yourself on your own tax return. Your only deduction is your standard deduction, which since you are a dependent is complicated and depends on how much of your income is earned and how much is unearned.
If you have only wages, your standard deduction is $5,150. If you have wages plus unearned income, your standard deduction may be less.
2007-04-01 10:10:15 · answer #4 · answered by ninasgramma 7 · 0⤊ 0⤋
No you dont have to pay income tax on it. But your parents may be eligible for serveral education credits on their tax return. Like the Hope, Lifetime Learning and Tuition and Fees credits.
2007-04-01 08:06:47 · answer #5 · answered by jeff410 7 · 0⤊ 0⤋
No,,
2007-04-01 09:09:26 · answer #6 · answered by Jo Blo 6 · 0⤊ 0⤋