Tax question for the Parents

<p>Anyone have any definitive answer on whether or not an upperclassmen (youngster, 2nd class, or firstie) can be claimed as a dependent? I understand that a plebe could be because more than likely the parents provided at least 50% of support as son or daughter was in the house almost six months of that year. I know the IRS regulations say that scholarships are not considered as support but attendance at an academy is probably considered more than just a scholarship. My interpretation is that we cannot claim them after their first year at the academy. Any different takes on this issue?</p>

<p>Nope, you have it correct.</p>

<p>USNA</a> Net - Taxes & Dependency</p>

<p>will second Luigi.</p>

<p>As it was explained to us during our D's Plebe year (in 2005), the Treasury Dept's benchmark for parental support is monetary value, not number of calendar days spent living at home:</p>

<p>"SUBJECT: Income Tax Information
Many of you as cadets have questions concerning the income tax consequences of cadet pay and allowances. This memo provides information from the standpoint of both your tax return and your parents’ return for 2005. It is very important that you share this data with your parents.
This memo is based on the tax laws and current rulings of treasury
officials. It is, however, informative only and does not necessarily reflect the
official position of the Internal Revenue Service or the Department of the
Army.
Your parent(s)/guardian(s) must have contributed more than half of your
support for the year in order to claim you as an income tax exemption “More
than half the support” refers to dollar value, and not to the length of time
support was furnished. Your parent or guardian may properly include the cost of board, clothing, lodging, medical and dental care, education, property
and furniture, insurance, etc., they furnished you when they calculated their level of support. If you lived at home during the first six months of 2005,
your parent or guardian may include a proportionate amount of the family food bill, utilities, rent or house payments, interest, taxes, etc., as part of
your support. If you attended college, prep school, or high school prior to
entering the academy, your parents may also include the amount they paid for tuition, books, school supplies, and transportation to and from school as parental support.
In determining the value of support furnished from sources other than
your parents, you must include both taxed and untaxed support amounts. This simply means that the portion of your taxable pay spent on your own support must be included, and in addition, the support provided by the Army in the form of food, lodging, education and other services must also be included. Even though the value of Army support is not taxed as income, the value must be considered when determining who provided more than half of your support. "</p>

<p>In our D's case, the value of the support provided by the Army her Plebe year was approx $33,000. Since we did not send her to private school prior to her entering West Point, we were unable to document a monetary support number greater than 33,000. Hence, we were unable to claim her as a dependent her Plebe year. I would assume that the rules are the same for all the academies as far as the IRS is concerned although the dollar amount of USNA support Plebe year might be less (or more?).</p>