The amount of your refund will be less. Your mom gets more. The idea is if someone else is supporting you you have less expenses and they have more.
If they were not entitled to claim you then they need to amend and remove you. If they do nor amend then just file your own proper return. The IRS will send letters to both taxpayers asking for proof that they can claim you to them and proof from you that they cannot claim you. The IRS will decide.
No. That is not one of the criteria for being independent of parents for financial aid purposes. (If it was, everyone would be 'disowning' their children to get more aid). Your parents will have to fill out the FAFSA in order for you to get aid. F...
Your parents benefit FAR more by claiming you as a dependent than you would benefit by claiming yourself. You get the benefits from #2 but not #1. In addition, your parents tax bracket is significantly higher than your own if you owe taxes in the first place.
What you'll get. The most you can claim is $592.
Good Reasons
If your income disqualifies you from claiming these credits, your child's income probably doesn't disqualify him or her. Therefore, your child may be able to report payment of education expenses for tax purposes and then claim one of the credits – but only if you don't claim him or her as a dependent.
Does it matter who claims a child on taxes for FAFSA? NO. Sorry for the caps, but we want to make sure you don't miss this answer. Your dependency status has nothing to do with whether your parent claims you on their tax return.
Cons of Claiming a College Student as a Dependent
If your child has earned income and you claim them as a dependent, they lose the opportunity to claim their own personal exemption (when applicable in future years) and certain tax credits that could be more advantageous for them.
To meet the qualifying child test, your child must be younger than you or your spouse if filing jointly and either younger than 19 years old or be a "student" younger than 24 years old as of the end of the calendar year.
There is no age limit for how long you can claim adult children or other relatives as dependents, but they must meet other IRS requirements to continue to qualify. Additionally, once they are over 18 and no longer a student, they can only qualify as an "other dependent," not a qualifying child.
Unearned Income. Unearned income includes investment-type income such as taxable interest, ordinary dividends, and capital gain distributions. It also includes unemployment compensation, taxable social security benefits, pensions, annuities, cancellation of debt, and distributions of unearned income from a trust.
The child must have lived with you for more than half of the year.2 3. The person's gross income for the year must be less than $4,300.3 Gross income means all income the person received in the form of money, goods, property and services, that isn't exempt from tax.
First things first: Whether your parents claim you on their taxes has no bearing on your FAFSA dependency status. Though they may seem similar, the two are not connected. The FAFSA asks a series of 10 questions to determine whether a student is dependent or independent.
When being claimed as a dependent on another tax return, your standard deduction is limited as well as the Earned Income Credit and the Education Credit.
However, to claim a college student as a dependent on your taxes, the Internal Revenue Service has determined that the qualifying child or qualifying relative must: Be younger than the taxpayer (or spouse if MFJ) and: Be under age 19, Under age 24 and a full-time student for at least five months of the year.
As a dependent student, your annual and aggregate federal student loan limits are typically lower than those for independent students. However, your parents can apply for a Parent PLUS Loan to help cover your educational costs.
Changes to Certain Benefits
The five dependency tests – relationship, gross income, support, joint return and citizenship/residency – continue to apply to a qualifying relative. A child who is not a qualifying child might still be a dependent as a qualifying relative.
Claiming a child does not create a “dollar for dollar” increase or decrease in child support, so it is important to specifically determine the benefit or loss. As a general rule, the parent who earns more taxable income receives a greater value for the dependency exemption.
The Department of Education doesn't have an official income cutoff to qualify for federal financial aid. So, even if you think your parents' income is too high, it's still worth applying (it's also free to do so).
Your parents' citizenship status doesn't affect your eligibility for financial aid, so even though your parents didn't submit a federal tax return, you're still eligible for all federal aid.
Your child must be under age 19 or, if a full-time student, under age 24. There's no age limit if your child is permanently and totally disabled. Do they live with you? Your child must live with you for more than half the year, but several exceptions apply.
It's important to note that if two or more taxpayers claim the same child, the IRS will use the “tiebreaker rule” to figure out who is eligible. You can always speak about your specific situation with your Jackson Hewitt Tax Pro when questions arise.
You must stop claiming your college student as a dependent once they are 24 years old or older, or if they start filing their own taxes jointly with a spouse.