<p>Hi all,</p>
<p>I started working at the beginning of 2012, earning about roughly $1,500 the entire year. My dad suggested that he would add me to his tax return (is this even possible?) so that I wouldn't have to file my own. If that happens, would I put "will not file" when FAFSA asks if I will file a 2012 tax return? Also, if I put "will not file" should I still list what I have earned in wages, tips, etc. when asked?</p>
<p>Thank you!</p>
<p>No, your dad should not report your income on his tax return. As long as you did not have any unearned income to complicate things, you did not earn enough to be required to file a tax return. A single person has a standard deduction of $5950 and income below that means a tax return is not required. However, if any taxes were deducted from your wages, you should file a return (your own) to get those taxes refunded to you. Your dad can still claim you as a dependent on his return and get the dependent exemption of $3800.</p>
<p>Whether you file a return or not, you must report your income on FAFSA. $1500 income will not affect your financial aid. A dependent student has a certain amount of income protection on FAFSA (around $6,000 this year). Income below that will not impact your EFC.</p>
<p>Thank you! I will put “not required to, and will not file” and enter my income.</p>
<p>Did your employer deduct any federal income taxes? if so, file to get a refund. Otherwise there is no need to file one.</p>
<p>As swimscatmom stated, you have to report your own earned income, if there is enough to pay taxes. Your father can include your “unearned” income (interest from a bank account) up to a certain point, nut not wages.</p>
<p>If you had tax withholding, it is in your interest to file your federal tax return. If you had state taxes withheld, you might be required to file the state return (each state sets its own filing requirements, it’s not worth going through the list here). If you have to file your state, it may be easiest to file federal too. The federal can be done for free online through the links at the IRS website. Most states have a free way to file as well.</p>
<p>Either way, you do report all income on the FAFSA and CSS profiles, even if you don’t file taxes.</p>
<p>dougway -that is not the correct way to file the taxes. If the students don’t make enough to owe any taxes, they are not likely to hear from the IRS, but if they did, they will likely get a letter which could arrive as much as 3 years later.</p>
<p>If the student has only unearned income (bank interest, and investment income) it can be claimed on the parent’s return, but if they have earned income (reported on a W2, or a 1099-misc) they need to file their own tax return. The parents still claim them as a dependent unless the student earned enough to support themselves.</p>
<p>In most cases, it is more beneficial for the student to file anyway.</p>
<p>I got it. Thanks a lot.</p>