<p>Hello,</p>
<p>I am in the process of filing my taxes for the 2013 year and I remember hearing mention of something about students being given a credit check for ~$3500? I cannot recall what the requirements are, but in the case this is true, I don't want to pass up this opportunity to take these funds and apply them to my growing debt. Here is a thread that mentions such a concept:</p>
<p><a href="http://talk.collegeconfidential.com/financial-aid-scholarships/650536-filing-taxes-independently-my-parents.html">http://talk.collegeconfidential.com/financial-aid-scholarships/650536-filing-taxes-independently-my-parents.html</a></p>
<p>"You should file your own tax return. As a single filer you have a standard deduction of $5450 meaning your first $5450 of earned income is tax free. Your parents can still claim you as a dependent and get a $3500 exemption for you (if your are in college and provide <50% of your support). If they are not able to claim you as a dependent you get the $3500 in addition to the $5450."</p>
<p>Thank you for your assistance!</p>
<p>Yes, it sound like you’re talking about the personal exemption. It’s not specifically for students and it’s not a credit and you don’t get a check for that amount. As you go through the tax form you’ll see where it’s subtracted from your income. But if your parents claim you as a dependent, they get the exemption, not you. You still get the standard deduction, generally $6100 for 2013, before any income starts being taxed.</p>
<p>Our son earned $4400 in 2013 at his part time job and had taxable financial aid income of approx $3700 (tuition/fees minus qualifying expenses). We met with our CPA yesterday and he stated that we should remove our dependent son from our tax return and have him claim himself which would result in his not having to file an income tax return because he would be below the threshold when you account for both the personal exemption and the standard deduction. He mentioned that our son was contributing to most of his support which is true due to a low EFC, a generous financial aid package and his job. My question is:<br>
Can a student’s financial aid (primarily fed and state grants) and two loans be used in the IRS support formula when trying to determine who gets the exemption? Will it be a problem on the updated FAFSA when it indicates two exemptions instead of three? I also read in another post that if the student claims himself on his own tax return that it can possibly result in problems for the student with regards to insurance coverage under the parents’ plans for medical, auto, etc. This is the first time I have heard of this – is this correct? If so, it would definitely create additional problems. Appreciate your input with regards to these subjects!</p>
<p>It is really best to start your own thread when you have a new question. People will generally answer the original post rather than a question buried in the thread. 
</p>
<p>With that said, I have been filing my own taxes as an independent since I was 18 as I provided over half of my support (it would be hard to claim otherwise as I made more than my parents). The student has to provide half of his/her own support. Loans and such (I believe) do not count towards this. With regards to insurance, it is something that you’re going to have to ask your individual company about. I have never heard of it being an issue but that doesn’t mean anything. The ACA requires that young adults up to age 26 are allowed to be covered under their parents’ health insurance plan regardless of tax dependency status. This was not so pre-ACA which is where some of those stories may have come from.</p>
<p>Best of luck. </p>