I am 23 and moved back in with my parents last September to stop renting an apartment and save up to move out for good in about a year or two. I was only working part-time at Meijer (a wal-mart competitor in Michigan), so I wasn't making a lot- so my parents claimed me on their taxes as a dependent and my tax return was greatly reduced. But now, I just got my first real job as a full-time teller at a bank, and every month I lose about $150 a week in taxes. I know that since I only make $28,000 a year or so, I'll probably be able to get a big tax return at the end of the year... but I know my parents want the tax write off for me still living in the house. Should I plan on filing on my own next year as an independent to get a big tax return, or should I stay put and let my parents claim me one more year since I am staying here rent-free? What exactly do my parents get for claiming me as a dependent? I'd much rather get a $1500 tax refund instead of $400 like the past couple years.
2007-08-24 15:59:25 · 6 answers · asked by Paris P 3 in Business & Finance ➔ Taxes ➔ United States
Your parents can't claim you as a dependent unless you were a full-time student for at least five months of the year and don't turn 24 this year, and you didn't provide over half of your own support for the year - so this year they probably won't be able to claim you. They can't claim you just because you live with them, there are many additional rules that have to be met - and if you weren't a student this year, then they can't claim you, since you are over 19.
This year assuming that you will be claiming yourself, your total tax liability for federal income tax will be around.$2500. If you have more than that withheld for federal income tax, you'll get it refunded to you - if you have less than that taken out, then you'd owe the difference. A refund just gives you back your overpayment, just like getting change at the grocery store. - it's not money the government just gives you.
2007-08-25 04:15:17 · answer #1 · answered by Judy 7 · 1⤊ 0⤋
You make far too much for your parents to claim you as a dependent this year. The cut off is $3,400 per year and you're making about 9 times that amount now.
You must file a tax return with your income as it's well above the filing limit of $8,750 per year. Whether you get any refund or not will depend upon how much is withheld from your pay vs your tax liability.
2007-08-24 17:14:00 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Your parents can no longer take you as a dependent as you are not a student. Under age 24, you must be a student to be a qualified dependent plus it would appear that you make more than 1/2 your support.
2007-08-24 16:09:35 · answer #3 · answered by magnolia 5 · 1⤊ 0⤋
Sweetie, that is a tuff one. That will all depend on you and your relationship with your parents.
If it were me I would talk to them and claim myself, then give them half... Depending on how much more it would be.
I do think that they should get something.
Find a good Accountant and let them figure out which way that you will get the most. But, please share something with your parents. They are your parents and obviously they really love you and care for you. So , try and make it work out the best for both of you.
2007-08-24 16:07:37 · answer #4 · answered by stacie m 4 · 0⤊ 2⤋
You make too much money to be your parents' dependent. You will have to file your own tax return. Your age has nothing to do with it.
2007-08-24 16:09:26 · answer #5 · answered by Anonymous · 0⤊ 1⤋
You need to file your own taxes. Compromise, pay them some rent to make up for their deductions.
2007-08-24 16:06:14 · answer #6 · answered by Raul21 5 · 0⤊ 1⤋