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Discussion Forum Index --> Consumer Questions --> Filing as a student
Cixelsydknup (talk|edits) said:
| 4 November 2006
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| Hello I just have a simple question I am a full time student attending a university, last year I made roughly $4000 dollars and I received all of my state and federal taxes back at tax time. My question is this year I am going to make close to $30,000 while I am still a full time student is there a cap on how much I can make to get all of my taxes back at tax time if so what is it?
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Solomon (talk|edits) said:
| 4 November 2006
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| If you are not being claimed as a dependent, for 2006 your standard deduction will be 5150 and personal exemption will be 3300. Anything over the total will be taxed. However, if you are paying tuition you will be able to claim some credit for that.
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Cixelsydknup (talk|edits) said:
| 4 November 2006
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| i am beign claimed as a dependent of my parents i am still living at home and i am 19 years old if that helps you any
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Solomon (talk|edits) said:
| 4 November 2006
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| Then you will be limited to the standard deduction of 5150 - your parents will get your personal exemption as well as any tuition credit. On 30k income your tax liability will be around 3500.
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Death&Taxes (talk|edits) said:
| 4 November 2006
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| Ask your parents to do their returns with and without you as a dependent, for there are times the deductions or credits for college tuition are more beneficial to the student. This is especially true if their income exceeds 160,000 [assuming Congress gets around to renewing the deduction for tuition] or if they pay Alternative Minimum Tax. The object is for the three of you to pay the least tax to Uncle Sam.
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Death&Taxes (talk|edits) said:
| 4 November 2006
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| As long as the student does not claim the exemption and the parents do not claim the exemption, this is permitted. I was unclear above, but the purpose is to use the college costs.
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Solomon (talk|edits) said:
| 4 November 2006
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| According to Publication 970, if the parents do not claim the dependency, then parents are not permitted to claim either the Hope Credit or the Lifetime Learning Credit. However, the student could. If tuition and fees deduction is reenacted and parents do not claim the dependency, then neither the parents nor the student can claim it.
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Jdugancpa (talk|edits) said:
| 4 November 2006
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| Hate to be a stickler for rules, but your parents may not be able to claim you as a dependent for 2006. In order to claim you as a dependent, it is still true that your parents must pay more than 50% of your support. Assuming you consumed the $30,000 in daily living (including education costs) your parents will have to have matched your $30k plus $1 in order for you to be their dependent. If you took out college loans for which you and not your parents are primarily liable, that also is support contributed by you. Add up the numbers of what you provided and compare to what your parents provided and it is doubtful that your parents will be able to claim you.
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Death&Taxes (talk|edits) said:
| 4 November 2006
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| Thanks JD: sometimes we miss the forest for the trees.
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