Tax Question. I really need opinion

[satoshi]

If you make too much money, normally your parents can't claim you as a dependent on their tax returns. There's an exception for full-time students under 25, so that shouldn't be an issue. I'm guessing he knows that?

You not being a dependent may mess up your health coverage, yeah. It depends on your state. I don't know Florida law. But again, you can still be claimed as a dependent.

Unless there is something else going on, I don't know. I'm not an accountant or familiar with health insurance in whatever state your dad has the policy and Florida.

I would contact a local Florida accountant just to ask. He may charge you, but even if he does, at least you know and you'll have better perspective about what you should do next.

 

[.Hack]

If you make too much money, normally your parents can't claim you as a dependent on their tax returns. There's an exception for full-time students under 25, so that shouldn't be an issue. I'm guessing he knows that?

You not being a dependent may mess up your health coverage, yeah. It depends on your state. I don't know Florida law. But again, you can still be claimed as a dependent.

Unless there is something else going on, I don't know. I'm not an accountant or familiar with health insurance in whatever state your dad has the policy and Florida.

I would contact a local Florida accountant just to ask. He may charge you, but even if he does, at least you know and you'll have better perspective about what you should do next.

I lived in VA but I'm down in FL for school. Thanks for response

 

[dmurray14]

You're fine, file taxes on your own but don't claim the personal exemption. Tell the IRS that you are a dependent and let them claim you as such. Your insurance will be fine and they will get the deduction, as well as the ability to deduct the school expense if they are paying for it.

I'm not an accountant, but that's how it was when I was in school.

 

[papajohn56]

does the insurance company require your income or something? because I thought that's a privacy violation (probably wrong here), unless they say "you can't possibly be making that while being a full time student"

 

[.Hack]

You're fine, file taxes on your own but don't claim the personal exemption. Tell the IRS that you are a dependent and let them claim you as such. Your insurance will be fine and they will get the deduction, as well as the ability to deduct the school expense if they are paying for it.

I'm not an accountant, but that's how it was when I was in school.

good 1st post >_>. Once I get the 24hrs thing off i will rep you :conehead:

 

[.Hack]

I don't think the TAX issue will affect you on your health insurance plans at all. At least what I know is that you can still be under your dad's insurance as long as you are under 25 years of age..... but again I'm not sure yet.

I mean family to me is my mom, dad brother and sister and no matter what if I can I will always take care of them. Relatives (aunts, auncles, cousins etc) are just relatives and you are not obligated to help them even if you are making the big bucks.

I have hispanic heritage too. and I will always take care of family. Always remember that they were with you in the bad and good times. That's the way we are, always taking care of our family members

Yea bro I want to help them when I get a steady income and not be hopping to different offers everytime. But you know how it is in spanish families. :disgust: Mira hijo tu tia (that you never seen or heard of) necesita aser un pago de $800 esta semana y no tiene el dinero, mandamelo polfa para ayudarla :crap:

 

[identity_00]

Just tell your dad u got a tax friend who is going to take care of it. Owes u a favor so dont worry about it. Then get an s-corp setup and start having a pro do it.

 

[olesh999]

Yea bro I want to help them when I get a steady income and not be hopping to different offers everytime. But you know how it is in spanish families. :disgust: Mira hijo tu tia (that you never seen or heard of) necesita aser un pago de $800 esta semana y no tiene el dinero, mandamelo polfa para ayudarla :crap:

a eso te esta pidiendo tu mama? que le prestest 800 dolares a tu tio que nunca has conocido?? pues si ahora veo por que quieres esperar un poco hasta antes de decirle a tus papas cuanto ganas lol!!

 

[Sonny Forelli]

didn't read this but be VERY careful- it sounds like your Dad is still claiming you as a dependent. If you lie about this to him you could very well fuck HIM.

Have an honest dialogue because you're no longer playing little boy games with your allowance once the IRS gets involved.

 

[hannahmcintyre]

Mi familia no esta latina, pero puedo hablar con usteden!

(Pero todo mi espanol viene de quatros anos quando fui al colegio, y hace cinqo anos ahora y no entiendo mucho ahora).

Habla con el IRS al telephono, van a decirte que puedes hacer.

 

[dably]

Your dad wants to claim you as a Dependant and may need to claim you in order to keep you on his insurance policy (really depends on the insurance policy rules some will say Dependant others will be fulltime student younger than 25 etc). In order to be a Dependant your parents need to have provided more than 50% of your support last year, which could cause problems if he claims you on his return and say you made a 100k last year and your folks only made 50k together or something similar.

As much as I would hate to do it you should tell your dad what is going on. Personally I work hard to keep my family from knowing what I make, they ask for money often enough as it is. I couldn't imagine how many times I would get hit up if they thought I was making a lot of money.

 

[ricdes]

I dunno man it's my biggest pet peeve. Then they will start treating me weird. Also I do come from a Hispanic background so you know how that is no offense to anyone but one a family member finds out you're making money everyone wants to leech off of you :disgust:

funny hispanic family you're in... wow. you should tell anyone begging for money to go ask state welfare. my parents have never asked me for shit, its the other way. they pretty much helped me everywhere they could and never asked for shit back... plus my family is just happy that they have at least 1 person sucessfully employing themselves.

also, get a cpa.

 

[jboogie]

Don't take advice off the internet except for from me: Hire a CPA.

For a few hundred dollars you can get advice from someone who knows the specifics of your situation and the laws in Florida.

 

[Websicosys Team]

Don't take advice off the internet except for from me: Hire a CPA.

Agreed. This should be your first step. It's funny that everyone's first reaction to a problem is to post on WF.

Hire the CPA.

From what you're telling us, it doesn't look good though. If you're making more money than your parents, then they cannot claim you as a dependent. Some insurance companies will only provide insurance to family members that are classified as dependents. This is where your CPA will come in...There is probably some bullshit IRS tax law where you can write something off or do some magic and you can have your cake and eat it too. This is why you shouldn't be reading this post, but rather contacting a CPA

 

[buckeyefan]

Agreed with most . Let your father claim you and you take a bit of a tax hit - since you will have to pay more in taxes however with the insurance it should even out. My Father is a bean counter and he did same thing when i was in college .

 

[.Hack]

funny hispanic family you're in... wow. you should tell anyone begging for money to go ask state welfare. my parents have never asked me for shit, its the other way. they pretty much helped me everywhere they could and never asked for shit back... plus my family is just happy that they have at least 1 person sucessfully employing themselves.

also, get a cpa.

Yep, I'm going to get a cpa pretty soon. It's not my family itself it's my mom's branch. My family lives in VA and my moms sisters and shit live in all over FL :crap: my dad's family could care less if I'm making money or not and that's the family I help if anything happens.

 

[dmurray14]

good 1st post >_>. Once I get the 24hrs thing off i will rep you :conehead:

Haha, thanks. Don't worry, I'm about to make a really dumb noobie thread asking for help...still trying to get started with AM but I'm still pretty confused.

Anyway, glad to have helped. From experience I've never had issues filing that way. As long as both of your taxes line up I'd think you'd be fine...if he is claiming the personal exemption for you as a dependent, just make sure you don't claim it yourself. I'd think having you both claim the deduction would be what would raise flags. Plus, if your dad's insurance simply requires you be a dependent, you're golden.

 

[graffitimonkie]

I believe parents get to claim child tax credit of $3,xxx per child under 18 or under 24 if college student. Could be trying to deduct his owing to the government.

 

[nickycakes]

Hire a CPA. You're going to have to tell your dad to stop claiming you as a dependent, and you may have to switch health insurance, which shouldn't be a problem since you're a fulltime student and obviously making enough money to pay for your health insurance regardless.

You're in a really good spot though, these are all good problems to have.

 

[RedMatrix]

Hello.

I didn't read the whole thread, so forgive me if you have found your best answer. however, I am a tax professional in a well known company in the US. (first year, but many many hours of tax courses)

In order for your parents to claim you as a dependent, you have to pass all of the following criteria:

• Be 23 yrs old or less
• still in post-secondary school (aka college, university, vocational institute)
• make less than the exemption amount ($3,650) for 2009
• must not provide over half of your own support (parents must provide 51%)
• must not be filing your own taxes as a married-filing-joint (MFJ)

So, they only thing your parents' tax preparer need to know is that you make more than $3,650 and provide over half of your own support.

If your parents DO claim you (if you pass the above list) then they would get to lower their taxable income by $3,650, and get UP TO $1,000 more for (let's call it) "Tuition Reimbursement," and UP TO $3,000 for EIC (aka earned income tax credit) depending on how many other children they are claiming.

If you add this up, they want to get credit UP TO $7,650 off what the IRS says they owe for 2009. (ie: Total Tax) Again, depending on how much THEY MAKE, how much they got taken out of their check, if they are "itemizing", if 1 or both are over 65 yrs old, filing a joint return, claiming "x" amount of people... etc.

There are a lot of variables.

F I N A L - A N S W E R

Tell them you made more than 3650 (say, up to 8 or 10K) for 2009 and that if they DIDN'T support more than half of your financial needs, they don't need to claim you. They don't need to know how much you actually made, or their tax pro either. They don't need to see any W-2 or 1099-MISC or check stubs.

Dave


I hope this helps. I am a so-so AM, and I got aff links to tax products, but will not release them here on this post since I am not trying to make any money off of you.