How much can a dependent make?

Question

I know there were several similar questions about this in the past year, but they are now closed and were rather not to easy for me to understand.

I am about to go back to school (i am 24, turning 25 in August), and if my mom can claim me as a dependant then i can get the family discounted tuition. This past year we were told (me and my bro) that we both made to much for her to claim us. Mom makes about 35k, and we both figured that we had made over over 10k. (this year he is now also making 35k, so he knows he can not be claimed, stupid lucky job offer)

I need to know what is the limit that i can make (i live in Ohio if it make any diference) and still be claimed as a dependent?

I figure it is somwheres around 10k, but am not sure. so if someone could give me a close estimate that would be most helpful.

Okay, if it is only 3,400 now and was only 3,300 before, then howscome every year prior i know each of us made more than that, and we were still claimed? Was because we were under 23?

Also, i will be a full-time student (as indicated by me saying "i'll be going back to school" ), would that change anything?

Answer 1

Student status is irrelevant once you reach the age of 24. You have to meet the income requirements. However, you may want to check with your school to find out if she has to be able to claim you on her federal taxes, or only provide more than half your support. Their requirements may be looser than the federal guidelines.

Answer 2

If you are under the age of 19 at the end of the year, it doesn't matter how much you earn, as long as you don't support 1/2 of your living expenses, you can be claimed by someone else.

Once you hit 19 (but do not reach 24 by the end of the year), then

a) if you are in school, the same criteria applies as if you were under 19.

b) if you are not in school, in addition to the "under-19" info, you must earn less than $3,300 (2006) $3,400 (2007).

Once you hit 24, the whole school thing is null and void. You must earn less than $3,300 (2006) $3,400 (2007) to be claimed by someone else. The state makes no difference.

Of course, there is other criteria for claiming people, but this is probably what you are looking for. Good luck! Try putting money into a 401k. Any money into the 401k lowers your earnings.

By the way, to be technical, the $3,300 and $3,400 is really your GROSS INCOME. This can basically be found on your 2006 1040 on line 22, although like most things from the IRS, there are exceptions like you can't subtract all passive rental losses (ignore that statement if you don't have rental property). This includes interest and dividends and stock sales. If you own stock that has gone down in value, selling it will make it easier to get a smaller gross income. Certainly, and by for the easiest way to lower your income, is to put as much as you can into a 401k.

Good luck!

Answer 3

Since you're over 23, the limit for 2007 will be $3,400. Any more than that and she CANNOT claim you as a dependent.

And if she claimed you as a dependent for 2006 and you earned $10k, she couldn't claim you for 2006 either and will need to file an amended return if she did claim you. The limit for 2006 was $3,300.

See IRS Pub 501. It explains the whole thing, except for the amount for 2007 which IS $3,400.

If you're 18 or under, your income doesn't matter as long as your parent(s) provided more than half of your support. If you're between 19 and 23 AND are a full-time student, the same rule applies. Once you turn 24, the income restrictions kick in regardless of your student status.