If I change my status from dependent to independent, does it cost me anything? ie, 2006 I'm dependent, 2007 independent. My parents have never taken out a PLUS loan for me, although they did pay part of spring 07 tuition. I've made ~$12,000 this year, and that does not include the loans and scholarships that pay for my tuition. All my parents pay now is the cell phone bill. I am soon to be 20.
Thank you!
2007-07-27 17:53:45 · 4 answers · asked by ilovedurango 3 in Business & Finance ➔ Taxes ➔ United States
I do not live with my parents. I have not for the past two years, although, they have paid the rent. The lease for my summer apt for an internship was in their name as well because I could not cover up front costs.
2007-07-27 17:56:37 · update #1
You don't get to pick and choose your status. The numbers determine if you are a dependent or not. How much of your support that YOU provide is what matters. Merely earning 'X' amount of dollars is meaningless in and of itself. Even if you spent all of the $12k towards your own support, if your folks paid $12,001 for tuition, you would be providing less than half of your support and they get to claim you as a dependent.
Without knowing ALL of the particulars it's not possible to say if you are a dependent or not.
2007-07-27 22:27:59 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
You just show the new status on your 2007 tax return, and your parents won't show you any more on theirs. You don't file any additional paperwork, and there is no charge for the change.
If you are providing most of your own support, and it sounds from your question like you are, then you are no longer a dependent of your parents.
2007-07-28 03:32:12 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
I can't remember but if your parents pay a certain percentage of your living expenses, they may be able to claim you as a dependent. If you are still in college, I think they can claim you as a dependent until you are 24. Claiming you as a dependent lowers your parent's taxes. If they claim you, you can't claim yourself and will pay more in taxes. I don't remember how much you can make. I guess I'm just not much help here. Go to irs.gov and everything you want to know is there.
2007-07-27 20:22:01 · answer #3 · answered by towanda 7 · 0⤊ 1⤋
Go to this link on the IRS website
http://www.irs.gov/faqs/faq2.html
Check IRS guidance to see impact on you.
It may impact your parents. Should not affect your financial aid status. They will still treat you as dependent.
2007-07-27 18:02:36 · answer #4 · answered by ? 3 · 0⤊ 1⤋