Ok, so my dad has been filing his taxes as head of household even though he’s married. He says that he didn’t know he wasn’t supposed to do that, and that if he changes it now, the IRS will find out and he’ll have to fix all of his taxes for the last like 20 years. He says that he’ll just do it right next year, but does that mean I won’t get financial aid this year (which I definitely need)? I’m a senior in high school btw.
Your dad needs to reconcile his taxes for 2015…then 2016 he needs to do it right.
I believe younwill,get selected for verification…because your parent tax filing status does NOT align with their marital status. Right?
Parents married? Living together?
My parents are married and living together, but my dad has always thought that he could file as head of household because he’s the only one working. I didn’t know about any of this until recently.
The standard deduction for head of household in 2016 is $9,300, for married filing jointly it is $12,600.
Also as married filing jointly, your dad could claim an exemption for your mom, did he claim her as a dependent all these years, or not?
Did your dad file his own taxes? He should see a tax accountant and see if he could amend 2015, 2014, 2013 tax returns. I think you can get refunds up to three years back.
@mommdc No, he’s never claimed my mom on his taxes, just my brother and me. He said that if he amended his taxes now, he would LOSE money, so I’m a bit confused. Also, my mom does file taxes, but it’s on foreign income, so my parents thought they should do it separately.
I too think he could have done better by claiming married, especially if your mother isn’t filing. If your mother is living and working in another country, then the HOH might be the correct filing status. If your mother has foreign income only, it is probably exempt from taxes here.
I think you are worrying about it costing your father more when it probably won’t. We can’t advise on his status because we don’t know all the facts. However, if you file FAFSA with his status checked as married, and then submit taxes with HOH, it is likely your are going to be selected for verification.
Are your parents living in the same household? If NOT, how long have they been residing in different places?
There are certain circumstances when HOH would,be allowed.
@twoinanddone But my mom is filing. She files as single, though. Not sure why.
@thumper1 My mom lives in another country about half of the time, and lives with us the other half, so I’m not sure if that counts as separate residences or not.
If your mother is filing single in the US but is married, that is probably an incorrect status. Your parents have to work out their tax issues, but the schools are going to question the status and it could screw up your financial aid.
You’re a kid, they aren’t your taxes, but the FAFSA will not match and will cause a verification and you have to deal with that.
@twoinanddone Ok, thank you. I’m just worried I won’t get aid now because it’s so late in the year.
It isn’t late in the year for federal aid. Schools give out aid by their own method, and some do have priority deadlines. All you can do is file FAFSA and work with the school, providing the information and documents they ask for.