Hi, my dad has been pestering me to file my taxes so I can receive the 1200 stimulus money. I wasn’t planning to because I didn’t earn enough in 2019 to file and don’t want to affect my aid since I’m already teetering on the edge of receiving aid and not. I know even if I file independently (can I do this?), FAFSA will consider me a dependent. But how would this affect my aid?
If you are 17 or 18 you aren’t eligible for the check at all
Your tax filing status has nothing at all to do with your college financial aid.
BUT…if your family is eligible for the AOTC, they won’t get that if you file as an independent.
@collegemom3717 I think those 17-18 years olds who aren’t eligible…it’s because they are dependents of their parents.
@BelknapPoint do you know?
In addition to not being able to claim the AOTC, your parents would not be able to get the $500 non-child dependent credit for you if you file independent.
If OP can be claimed as a tax dependent on a parent tax return but a parent does not make the dependent claim, OP is not eligible for a stimulus payment, even if OP files his/her own tax return.
https://www.irs.gov/coronavirus/economic-impact-payment-information-center
Also:
- Taking the above action would not in and of itself make OP independent for FAFSA purposes.
- The parent(s) would lose the $500 qualifying dependent tax credit that they might otherwise qualify for.
- The parent(s) would not be eligible to claim an education tax credit for OP (American Opportunity Credit or Lifetime Learning Credit), although the OP might be able to claim at least the refundable portion of the AOTC on his/her own return.
In summation, it’s probably a very bad idea (financially) for OP to file his/her own tax return if OP has no tax liability. Oh, and the bright side is filing your own tax return probably won’t affect your need-based financial aid.
Not true. It depends on your filing status. It’s just that many 17 and 18 year olds are dependent.
OP is @ 20 I think. If he was getting the stimulus money, wouldn’t he already have it? I know DS did and he hasn’t done his '19 taxes yet. but he is fully $$ independent for taxes and gets his own AOTC. We don’t qualify for any aid so fafsa is never a factor as he is under 24.
I am 19. I looked at my dad’s 2019 return and he didn’t claim me, so I was backed into a corner. My parents didn’t receive any stimulus money because they’re undocumented so I suppose my dad was banking on me. I had a feeling this would still have a net negative effect though.
Filing your income tax return isn’t a negative thing for financial aid UNLESS you have done all of your work under the table in cash and there is no record of your income anywhere which would mean that your income tax return would be proof of income at FAFSA time. Of course, failing to file a return and pay taxes owed on cash income is a whole other legal issue that you don’t want to get yourself into.
So file your return. If you overpaid on income taxes you will get that money back. If you underpaid, you will have a chance to get yourself straight with the IRS. This also could make you eligible to claim the AOTC or Lifetime Learning Credit for yourself, and might position you to receive the stimulus money. @BelknapPoint might be able to help you sort out how that would work.