<p>This isn't directly related to finaid but...</p>
<p>Any advice for a student filling out a W4? It appears I can only claim one allowance (for being single)... is it possible to claim more? How many can/should I claim?</p>
<p>I make just enough so that I don't have to file taxes, but I claimed zero allowances while working over the summer, so I figure I should file taxes to get withheld money back. I'm assuming this is the correct mentality... Will filling taxes affect finaid at all? I mean my income would have been reported either way, through my tax return or on my parents'.</p>
<p>Thanks!</p>
<p>If your income is at or over the 2012 standard deduction of $5950, you must file a tax return. Even if it is below $5950, you should file a tax return to get any tax overpayment refunded to you. File your own tax return. DO NOT FILE through your parents tax return. </p>
<p>Filing a tax return will have no effect on your financial aid (except you must of course file a return if legally required to do so, not doing so means no aid). Your income must be reported on FAFSA whether you file a return or not. </p>
<p>As far as the W4 is concerned, the number of exemptions you enter affects how much tax will be withheld (more exemptions - less tax withheld). If you are a student aged under 24, it is likely your parents your parents will still claim you as a dependent on their return. That being the case, you should technically enter 0 for the allowances as only you or your parent get to claim you as an exemption (personal exemption if you claim yourself, dependent exemption if your parents claim you). If your parents will not claim you as a dependent, then enter 1.</p>
<p>Your income through wages can never be claimed on your parents’ return. That is only possible with "passive"income such as interest on a bank account, and only to a certain extent.</p>
<p>As far as a W4, you can put whatever you want, including checking the “exempt” box so that no taxes are taken out. If you file exempt, and and up owing taxes, you will have to pay them when you file your tax return. If you had taxes withheld, it is to your benefit to file to get a refund, though it is not required if you are below the filing threshold (note that not owing anything doesn’t mean you don’t have to file).</p>
<p>Filing taxes should not impact financial aid at all. If you had income, it must be reported as your income, whether you file or not. If you do file, it just makes it easier for the school if you are chose for verification.</p>