I'm 20 yrs old college student and in this year tax return, my parents claim me as dependent on their tax return. I was wondering for next years and future returns, should i have my parents claim me as dependent or should I claim myself dependent?
Also what does claim 0 and claim 1 means?
2007-04-01 12:14:43 · 5 answers · asked by Ecchiness 1 in Business & Finance ➔ Taxes ➔ United States
As long as you are a full-time student under age 24 your parents can continue to claim you as a dependent if they provide more than half of your support.
As to the rest of your question, are you referring to your Form W-4? If so, you should claim zero since you won't be able to claim a personal exemption for yourself when your parents are claiming you.
2007-04-01 16:53:25 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
As long as you are in college and under age 24, if you provide over half of your own support, then you'd claim yourself, otherwise your parents can claim you. If they CAN claim you under those rules, whether they do or not, you aren't allowed to take an exemption for yourself.
On a W-4, the number of allowances you claim, 0 or 1, controls how much is deducted from your paycheck for tax withholding. If you can be claimed as a dependent, and make enough to have to pay any taxes, you should probably claim zero to avoid owing taxes when you file.
2007-04-01 13:55:04 · answer #2 · answered by Judy 7 · 1⤊ 1⤋
Your parents will get a child tax credit for claiming you as a dependent so it will help them out. If you claim independent it will help you get more money back from your taxes.
If you're receiveing 51% or more help from your parents then you should be claimed dependent since you're depending on them for financial support and rightly they should get the tax break.
If they do not help you out 51% or more financially then that credit should go towards you so that you get a bigger tax break.
Claiming 0 and 1 is essentially the same thing. You count yourself as 1 or you can enter it as 0.
2007-04-01 12:25:23 · answer #3 · answered by i!i!i!i!i! 3 · 0⤊ 4⤋
As long as you are a full-time student under 24, and you do not provide over half of your own support, then your parents will be able to claim you as a dependent, and you cannot claim yourself as a dependent.
"Claim 0" means you are not claiming yourself as a dependent. "Claim 1" means you are claiming yourself as a dependent.
2007-04-01 13:45:03 · answer #4 · answered by ninasgramma 7 · 0⤊ 3⤋
If your parent's income was used to help you get financial aid you'll probably want to keep letting them claim you.
2007-04-01 12:19:54 · answer #5 · answered by Venita Peyton 6 · 1⤊ 1⤋