Does she have to file and if so just as single with one dep.-herself?? Do I get any kind of break since she is in college???
2007-11-14 02:34:28 · 6 answers · asked by trixibel 6 in Business & Finance ➔ Taxes ➔ United States
She lives at home-so i do support her.
2007-11-14 02:43:10 · update #1
Would it be more beneficial for me to claim her as a dep or for her to claim herself. I made alot more $$ than she did.
2007-11-14 02:44:22 · update #2
Each of the issues that you have raised has an different test.
Initially, your daughter will need to file a tax return because of the amount of income. Whether she is a dependent depends on who provided more than half her support. That person and only that person should claim her as a dependent. This is based on expenditures rather than income, so if your daughter spent her savings that would count as her providing her own support. I believe the rules ignore scholarships for this purpose, but you will need to look at the rules if that situation applies to you.
As for tax breaks because she is in college, you need to look at IRS Publication 970. Attending college by itself does not provide a tax break, but paying for college may provide a tax break. You will need to consult that publication to get information about your specific situation.
2007-11-14 02:49:28 · answer #1 · answered by ? 6 · 1⤊ 1⤋
Your daughter meets the test as your dependent assuming that she did not provide more than half of her own support. You get the exemption and she does not.
You can NOT decide to let her take her personal exemption. The law determines who is entitled. Even if you do not claim the exemption, she is not entitled to it under the law if you are eligible to claim her even if you do not do so.
Since her income is above the filing requirement amount for her status ($5,350 for 2007) she must file a return. She may or may not get a refund of taxes withheld depending upon her individual circumstances.
Assuming that you paid her tuition you may be eligible for a number of credits or deductions. See IRS Pub 17 for a complete discussion on those and links to other pertinent information.
2007-11-14 02:47:24 · answer #2 · answered by Bostonian In MO 7 · 2⤊ 0⤋
Yes she has to file a return, as single, but without claiming herself since you can claim her. She'll check the box on her return that says she can be claimed by someone else.
Since you CAN claim her, she can't claim herself even if you didn't claim her.
You would probably be able to take an education credit for a portion of her tuition and fees.
2007-11-14 15:21:35 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
You and your daughter do not get to pick which one takes her exemption.
If your daughter does not provide over half of her own support, then you claim her as a dependent. If she does provide over half of her own support, she claims herself as a dependent.
If your daughter is your dependent and you pay expenses of higher education, you may be eligible for credits or deductions for those expenses.
If your daughter is not your dependent, then she is not required to file a tax return and will not owe any taxes. However she may want to file a tax return, claiming herself, and receive all withholding of federal income taxes back.
If your daughter is your dependent, then she is required to file a tax return. She will file with zero exemptions. She will owe a small amount of income taxes (less than $200).
2007-11-14 03:27:13 · answer #4 · answered by ninasgramma 7 · 0⤊ 0⤋
To be able to claim her as a dependent I believe you would have to be able to show that you provided more than half of her financial support for the year.
2007-11-14 02:41:56 · answer #5 · answered by Anonymous · 1⤊ 1⤋
Only one of you can claim her as a dependant. If she does, you can't, and vice versa.
2007-11-14 02:43:09 · answer #6 · answered by bsxfn 3 · 2⤊ 1⤋