Quick off the Wall Tax question for parents

<p>Now that I’m doing taxes; yee’ha; have a quick question. Next year, when my son is in the academy, is claiming him as a dependent on taxes pretty much a “no-go”? To make the question simpler; let’s take their sophomore year when they didn’t spend 6 months at home. Does the $800+ that they are technically being paid count as “Base Pay” and therefor they should file separately on their own; or does that money come up similar to “BAQ/BAS” which isn’t taxable, and therefor I can claim them as a “Dependent” for my taxes? Thx…</p>

<p>Four tests will qualify a child to be a dependent</p>

<p>These rules enable you claim a child as a dependent. </p>

<p>Qualifying Children</p>

<p>To be claimed as a qualifying child, the person must meet four criteria:</p>

<p>Relationship — the person must be your child, step child, adopted child, foster child, brother or sister, or a descendant of one of these (for example, a grandchild or nephew). </p>

<p>Residence — for more than half the year, the person must have the same residence as you do. </p>

<p>Age — the person must be </p>

<p>[ul]
[<em>]under age 19 at the end of the year, or
[</em>]under age 24 and a be a full-time student for at least five months out of the year, or
[li]any age and totally and permanently disabled.[/ul]</p>[/li]
<p>Support — the person did not provide more than half of his or her own support during the year.</p>

<p>As your son will not be living with you for more than half the year, he cannot be claimed.</p>

<p>He should file his own tax returns as well.</p>

<p>:cool:</p>

<p>The Academy will claim $12.500 in support for next year. Unless you can exceed that number chances are you will not be able to claim him as a deduction. The Academy will give you some good info about this at Orientation. </p>

<p>I am not able to claim potter for the first six months of 2007 becuase I cannot show more than $12,500 in expenses. We are filing her taxes as Single head of household for 2007. She will get everything she payed in FITW for 2007. I am waiting for her W-2 info. We talked last night about it and her info is up on Mypay. So I expect to file hers over the weekend.</p>

<p>There are parent groups like FAMNET, and yahoo groupd for parents of each class. Currently a lot of parents are asking the same questions. Most are learning the deduction ended last year.</p>

<p>I have a question about the residence requirement;
My daughter that will be attending an in-state private college will not have the same residence but all of the other requirements apply. Does that mean that I can't claim her as a dependent in 2008?</p>

<p>If she doesn't live at home, she doesn't meet all four of the requirements needed to claim her as a dependent.</p>

<p>since your children are active duty military they are no longer your dependents. if your child was attending a civilian college and living away from home then - yes you can claim the deduction - providing you are supporting them - i.e. paying tuition, room, board, etc etc etc........</p>

<p>Here is a tidbit that you hopefully will never have to use:
If your child leaves the academy and then applies to a civilian school then they are no longer your dependent for federal financial aide. They will file the fafsa on their own.</p>

<p>Thanks all, that is what I thought.</p>

<p>A correction however; the 6 month LIVING at the same RESIDENCE does NOT apply to college students. I.e. You kid is in college for 8-9 months a year; you STILL can claim them as a dependent.</p>

<p>The other thing I was wondering, which you all answered, was the dollar amount. The academy is claiming $12,500. 2 people can't claim the same dependent for expenses. So, that answers the question.</p>

<p>But to answer txtwinmom; you can claim your daughter even if she is in the dorms at college. 1 note to worry about however is if she makes any money at a part time job or any other income. As long as it's below the minimum $3,xxx.00 (Can't remember the limit right now); you are OK. If she makes more than that, and you want to still claim her, you will have to also claim that income.</p>

<p>Anyway, thanks all.</p>

<p>P.S. I assume that the academy helps the cadets with tax issues; OR is the money they make for the 4 years not considered income and they don't have to worry about taxes???? Anyone know?????</p>

<p>Christcorp - I am glad you cleared that residence question up. Generally, education is considered a temporary absence and eliminates the 6 month rule. It also states in publication 501 that military service counts as a temporary absence - I don't know if that helps out anyone here. </p>

<p>I am curious where you got the info about having to claim their income. Can you direct to me to a source? My belief is that they have to file their own taxes at a certain point but can still be claimed on the parents taxes. Hopefully that' correct!</p>

<p>I really do wish we could get a simplified tax code so that it wouldn't take hours to just file each year!!</p>

<p>My kids have been earning money since they could work - they have always filed their own taxes - I claim them as a dependent. They do not claim themselves as a dependent.
It may depend on your situation - mostly I think you make out better if the child files. But - I am not a CPA - lol.</p>

<p>Yes PA and Just a mom. I should have clarified. Just like the academy is CLAIMING our kids and you can't, the same applies when the files their own. There are many options.</p>

<ol>
<li><p>Kid make less than minimum amount; overlook the income, claim as your dependent, only include your own money, and forget everything else.</p></li>
<li><p>Kid makes more than the minimum amount; let them do their own taxes and claim themselves as single and you don't claim at all.</p></li>
<li><p>Kid makes more than the minimum amount; let them do their own taxes and they check the box (Claimed as dependent on someone else's filing), and you claim them as a dependent.</p></li>
</ol>

<p>You CAN claim their income on yours if you like, but there are additional rules and procedures. I believe it's form 8814. Usually, it''s best to do option 2 or 3.</p>

<p>I'm not a CPA either, but there is nothing in the Tax Code that I'm aware off that ties the filing of a return to that person's status as a dependent on their parents return. </p>

<p>DS52262 -- how are you filing your daughter's taxes as head of household? That filing status requires the filer to have a dependent -- there are very specific rules around HOH.</p>

<p>Some good information in this thread</p>

<p><a href="http://talk.collegeconfidential.com/parents-forum/57955-tax-aspects-scholarships-fellowships.html?highlight=taxes+dependent%5B/url%5D"&gt;http://talk.collegeconfidential.com/parents-forum/57955-tax-aspects-scholarships-fellowships.html?highlight=taxes+dependent&lt;/a&gt;&lt;/p>

<p>And here also</p>

<p><a href="http://talk.collegeconfidential.com/parents-forum/431874-dependent-not-dependent-question.html?highlight=taxes+dependent%5B/url%5D"&gt;http://talk.collegeconfidential.com/parents-forum/431874-dependent-not-dependent-question.html?highlight=taxes+dependent&lt;/a&gt;&lt;/p>

<p>Sorry, you are correct I will be doing it this weekend, and she will be declared single no ones dependent. The Academy is actually passing a free site to all the cadets. I assume it is similar to turbo tax or tax cut.</p>

<p>Well, on another note, if any parents are worries if their kids can do the taxes without help, no worries, help is here!</p>

<p>


</p>

<p>Help any worried parents?</p>

<p>
[quote]
But to answer txtwinmom; you can claim your daughter even if she is in the dorms at college. 1 note to worry about however is if she makes any money at a part time job or any other income. As long as it's below the minimum $3,xxx.00 (Can't remember the limit right now); you are OK. If she makes more than that, and you want to still claim her, you will have to also claim that income.

[/quote]
</p>

<p>??? Don't think this is correct. My freshman daughter made @ $5,000 last year (including taxable portion of her scholarships). We claimed her as a dependent but do not have to claim the income - in fact cannot claim it. She filed a tax return as single to get back excess tax paid.</p>

<p>swimcatsmom; please see my previous post. I already "Qualified" that statement. Thx...</p>

<p>The kiddie-tax, which used to apply to children 14 and under applies to children 18 and under as of last year if I remember right, spells out the different options of how and when you can claim a child's income on your return. I've always found that having my son claim his own income, even if it was not earned-income (i.e. capital gains or interest) was more beneficial than trying to include that income on my return. I'm over-simplifying, but effectively, my marginal tax rate is a couple of brackets above the marginal rate my son is in.</p>

<p>
[quote]
swimcatsmom; please see my previous post. I already "Qualified" that statement. Thx...

[/quote]
</p>

<p>OK - missed your 2nd post :)</p>