<p>What if the individual is a dependent and the costs are paid by the parent. Can that be deducted by the parent as a misc expense as I see no way to input it as an educational expense and the internships do not meet the 39 week employment rule. Then what expenses are allowable - transportations to and from, Room and board, other?</p>
<p>I believe using the standard deduction is the best way to go. Our tax code does not treat students doing out of town internships fairly, in my opinion. My son is going to intern with Boeing in Seattle this year. He will be paid a travel allowance and, according to Boeing, will be shown as earn income in the W2. I still do not see any way to deduct the travel and summer living expense for him. I know we can always try to do something that we think is correct in filing our taxes. But whether it is legal or not is another question.</p>
<p>Not sure this was answered but my daughter had a paid internship out of state which included a stipend for relocation. She received a W2 with that amount included. What expenses can she offset? The housing was very expensive. She is a student and I have usually claimed her as a dependent (her school year expenses are paid by us)<br>
Would she need to file her own return to be able to deduct?
Help!</p>
<p>If that amount is considered earned income, then it is subject to income taxes. Dependents are able to claim the greater of $1,000 or earned income + $300, up to a maximum of $5,950 (the current individual standard deduction). If the dependent has earned less than $5,950 in income and less than $1,000 in investment income, she does not need to submit a return (but she should since she probably had taxes withheld).</p>
<p>Because she had relocation paid, she cannot deduct any relocation expenses. Because she probably does not own any property, she doesn’t have any reason to itemize deductions, so it makes sense for her to submit a tax return using the standard deduction. She will get a nice refund since taxes are generally withheld based on an annualized wage (i.e. if she got paid $1,000 a week for 12 weeks, she would have around $2,100 taken out in withholding based on a $52,000 annual salary, but she only owes $605 on $12,000, so she would get a solid $1,500 back!).</p>
<p>If anyone is an accountant, could you check me on the above information? I believe it’s right, but I’m not 100% certain.</p>