I now have my own place, car and everything. Will I get more back, since I am filing "Independant", because I no longer live with or depend on my parents? Also, what exactly can you get a tax credit on (ie, being a full-time student, college books, gas, clothes for work, etc.....)? I'm really nervous about the possibility of having to pay taxes due to changing my status! Thanks!
2007-12-29 14:22:50 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
And just a little more info:
I have been living on my own since last December, and I have worked 40 hours each week (full-time). Sorry, I should have clarified that earlier!
2007-12-30 05:40:52 · update #1
If you have bought a place you get to count interest from the house payment. From the question I assume you are a student and so your income is probably not that high. That means that the tax braket you should fall into is pretty low and so the amoutn you ill be taxed is also pretty low. You can declare some of your school tuition and your books also. I suggest that you get TaxAct and do your taxes like that. I do mine online every year with them and they have Audit Protection so that as long as you inserted everything as accurately as possible if you ever get audited you will be protected by their lawyers. You can use the online service with no worries. I can tell you that I did a friends taxes last year...19 yrs old, waitress, college student, living at home...she got back $750 from federal and $320 from state.Good Luck.
2007-12-29 14:46:13 · answer #1 · answered by B J H 1 · 0⤊ 0⤋
It depends on how much your total income is for the year, but being able to claim yourself will probably make about $340-$500 difference in your total tax liability.
You can get an education credit for part of your tuition and fees, but not for the other items you mention.
If you have your W-4 filed as single/one allowance or single/zero allowances, you shouldn't end up owing at tax time.
2007-12-29 16:33:59 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
If you have moved our to your own place recently, you still may not be eligible to claim your own exemption. You may still be dependent for 2007 and your parents may be claiming you.
Also if both you and your parents claim the exemption, both of you will get letters from IRS. One of you will have to file amended return and pay interest and penalty. So you should discuss your position with your parents.
Now about how much you will get by changing your tax status, we need to know your total earned income and other income for 2007. You won't get Earned Income Credit if you are Single under 25.
2007-12-30 02:02:52 · answer #3 · answered by MukatA 6 · 0⤊ 0⤋
If you have enough income to survive on your own, your parents cannot claim an exemption for you anyway. If you have had withholding based on a W-4 claiming zero, one or maybe even two allowances, you should be fine.
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2016-12-11 16:22:38 · answer #5 · answered by figueredo 4 · 0⤊ 0⤋