My father claims me as dependent on his tax return, but I'm not sure how that will work this year. I was dependant on him from January to June, but since June and on I no longer am. Here is some additional information:
I am 23 and single. Do not own a home (saving). Get my degree in August (was a full time student). I started a full time job in June making 50k+ salary. I also worked part time during school and made between 7k-12k this year.
My question is can my dad still claim me as a dependant on his tax return this year? I know its technically my up to me, but I want to make sure it is legal still and the negative affect on my tax will be less $$ than the overall benefit $$$ he receives on his return. Lets say I get $1000 less and he only gains $500 from me on his return it would be stupid to claim me. Now if it where reverse I am ok with it for this year as i was dependant on him part of the year. I just wish a 1/2 year dependant claim could be done.......
2007-07-19 05:42:23 · 4 answers · asked by Kyle 2 in Business & Finance ➔ Taxes ➔ United States
Actually, technically it's NOT up to you, it's up to the IRS rules.
Your dad meets many of the rules to be able to claim you, but there are a couple that he might not, and he'd have to meet ALL the rules to claim you. This assumes that you won't turn 24 before the end of the year - if you will, then no he can't claim you this year no matter how any other tests turn out.
Did you live with him after June? If you moved out into your own place before the end of June, then he can't claim you.
Did you provide over half of your support for the year? From your description of your earnings, sounds like you probably did if you spent any significant amount of your earnings on your own support. There's a worksheet on page 32 of IRS Publication 17. Download it at irs.gov and fill it out. If you provided over half of your own support, then he can't claim you. It's support, not earnings, that count though.
If you lived with him over half the year (and the time you were in school, even if you were away at school, would still count as living with him), and you didn't provide over half of your own support for the year, then he can claim you.
2007-07-19 10:49:33 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
It's not up to you OR your father -- there is NO technicality involved with this! The facts and figures determine if he can claim you or not. If he can then you lose your personal exemption even if he doesn't claim you. And if he can't, then you get your personal exemption regardless of who would benefit more from it.
For your father to claim you as a dependent, several tests must be met. You must have lived with him for more than half of the year. (Time away at school counts as home time.) If you are under 24 at the end of 2007 you must have been a full time student for at least 5 months since you are over 18. And you must not have provided more than half of your own support for the entire year.
If you turn 24 before the end of 2007, he cannot claim you since you earned way too much to be considered a "qualifying relative" and at age 24 you're no longer a "qualifying child".
On top of that, with the new job paying $50k per year on top of what you've already earned it's very likely that you will have paid more than half of your own support for the year as a whole. If this is the case, then your father cannot claim you as a dependent under any circumstances.
It doesn't matter who makes out better, you have to determine whether or not you can be claimed under the law, not what you'd prefer.
2007-07-19 13:00:24 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
If he paid for more than half of your support for the year, and you where a full time student for at least 5 months he 'might' be able to claim you as a dependent.
I agree that it is silly that there are no half year dependents....but, the reality is it is what it is on Dec. 31 and the rest of the year doesn't matter (in this case).
But, also in reality your not talking about that much money to begin with...only the tax on what will probably be $3200 this year. And if you a making 50k+a year for half a year plus about another 10k...and single you are gonna be in the 28% bracket too.
My suggestion is that you claim yourself and if you feel guilty calculate your tax savings and give it to your dad.
Again...I point out that he has to have provided more than half of your support...by my math that will be a bit over something between 32k-37k for any other legal option.
Russ
2007-07-19 13:32:20 · answer #3 · answered by Russ B 6 · 0⤊ 2⤋
You are no longer his dependant. Plus you can only claim some one as a dependant if they make under 6k, I think, not too sure.
But, I know that I could no longer claim my sister, even though she still lives with me because she made 15k last year.
2007-07-19 13:41:24 · answer #4 · answered by Cali Girl 3 · 0⤊ 2⤋