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My parents still claim me as a dependant even though I support myself financially. It's been fine with me, since they have more to gain from being in a higher tax bracket, but can this affect financial aid or student loans I may be able to receive?

My father does my taxes, and I get a pretty good tax return every year.

What are the dissadvantages of being claimed as a dependent?
Does it affect what student loans I can get?
Are there education expenses (room and board) that I can deduct?
any thing else?

And what does he have to lose by not claiming me?

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If he does not claim you, could you lose eligibility to be on your family's health plan?

berlinsmommy said: If he does not claim you, could you lose eligibility to be on your family's health plan?

ahh, good point. Though I never get sick or hurt But there always is that risk, so that's worth something.

I went through a similar situation when I was in college. The major thing that you have to realize is being an independent and dependent on your tax return does not directly effect your status on the FAFSA. I supported myself through college and claimed myself as a independent on my taxes however when I filed my FAFSA I still had to enter my parents information because I could not answer yes to some of the questions that they use to determine dependency status. (ie. are over 24 years of age, in the military, have a child... etc) If are a typical 18 or 19 year old you will probably still be considered dependent on the FASFA regardless of filing status.

chantspel said: If are a typical 18 or 19 year old you will probably still be considered dependent on the FASFA regardless of filing status.Unless you are/were in the military, are married, or an orphan, it is almost impossible to legitimately be independent on the FAFSA; doesnt matter if your parents claim you as dependent on their tax return or not. Until you make enough money to need the exemption yourself, they might as well keep doing it to save some cash each year.

berlinsmommy said: If he does not claim you, could you lose eligibility to be on your family's health plan ?Health plans usually have their own requirements regarding age, college status, etc. Claiming him on their 1040 isnt typically a requirement.

I was in the same boat in college. It s*cks because I got stuck footing my college education based on the sh!tty financial aid I received since they considered my parents income instead of just mine.

To file as a Independent you need to be the age of 23 or above or in the Military. There is no way around this. The sad fact is both of your parents could be dead and you still cant file as a independent.

Anyone have any experiences as to being dependant/independent has on trying to establish residency in state where school is located in order to obtain in-state tuition rates? E.G. if you are not listed as a dependant on parents tax returns will that give you a more favorable chance of getting approved forin-state tuition rates. I failed miserably at trying to get in state tuition rates 15 years ago, even though I ended up staying in-state after I graduated.

cheapdad00 said: Anyone have any experiences as to being dependant/independent has on trying to establish residency in state where school is located in order to obtain in-state tuition rates? E.G. if you are not listed as a dependant on parents tax returns will that give you a more favorable chance of getting approved forin-state tuition rates. I failed miserably at trying to get in state tuition rates 15 years ago, even though I ended up staying in-state after I graduated.

At the school I went to the "clock" stopped the second you started taking classes. You had to be a resident for three years prior to going to school.

It didn't matter if you had an in-state driver's license, car registration, paid in-state taxes, voted in-state, filled out the census in-state....

Which kind of makes sense because everyone by their senior year would be "in-state" if you simply had to live their for 3 years and would defeat the purpose of in-state/out-of-state. Besides that during the years you were a student you weren't paying too many state taxes anyway which be the reason why you deserved lower tuition.

As long as you're under 24, not married, don't have a kid, aren't in the military, etc, your tax filing status will not affect your financial aid, so don't worry about it.

Basically, what you are losing by being claimed as a dependent is: money
and what your dad would lose by not claiming you is: money.

The real question becomes who stands to lose how much money. When my dad and I had the same issue, we resolved it by using software (TurboTax or similar) to calculate both scenarios on each of our returns (me dependent, me independent, him with me as dependent, him without me as dependent). Let's say (in a totally made up scenario) by claiming me as a dependent my dad gained $1000 and I lost $500 (net $500 refund) , but by not claiming me, he'd lose $750 and I'd gain $1750 (net $1000 refund): we would choose the scenario in which the net refund is the highest, in this case not claiming me as a dependent. Then, to make it fair for both of us, we'd split the difference. Which scenario works out the best way will depend on each of your incomes, filing status, etc for that particular year, so you may find that the same thing will work best for you each year that you're in school, or that you wind up alternating.

addy2000 said: As long as you're under 24, not married, don't have a kid, aren't in the military, etc, your tax filing status will not affect your financial aid, so don't worry about it.

Basically, what you are losing by being claimed as a dependent is: money
and what your dad would lose by not claiming you is: money.

The real question becomes who stands to lose how much money. When my dad and I had the same issue, we resolved it by using software (TurboTax or similar) to calculate both scenarios on each of our returns (me dependent, me independent, him with me as dependent, him without me as dependent). Let's say (in a totally made up scenario) by claiming me as a dependent my dad gained $1000 and I lost $500 (net $500 refund) , but by not claiming me, he'd lose $750 and I'd gain $1750 (net $1000 refund): we would choose the scenario in which the net refund is the highest, in this case not claiming me as a dependent. Then, to make it fair for both of us, we'd split the difference. Which scenario works out the best way will depend on each of your incomes, filing status, etc for that particular year, so you may find that the same thing will work best for you each year that you're in school, or that you wind up alternating.


My dad owes me some money!

geoncic said: addy2000 said: As long as you're under 24, not married, don't have a kid, aren't in the military, etc, your tax filing status will not affect your financial aid, so don't worry about it.

Basically, what you are losing by being claimed as a dependent is: money
and what your dad would lose by not claiming you is: money.

The real question becomes who stands to lose how much money. When my dad and I had the same issue, we resolved it by using software (TurboTax or similar) to calculate both scenarios on each of our returns (me dependent, me independent, him with me as dependent, him without me as dependent). Let's say (in a totally made up scenario) by claiming me as a dependent my dad gained $1000 and I lost $500 (net $500 refund) , but by not claiming me, he'd lose $750 and I'd gain $1750 (net $1000 refund): we would choose the scenario in which the net refund is the highest, in this case not claiming me as a dependent. Then, to make it fair for both of us, we'd split the difference. Which scenario works out the best way will depend on each of your incomes, filing status, etc for that particular year, so you may find that the same thing will work best for you each year that you're in school, or that you wind up alternating.


My dad owes me some money!


Actually, I think you owe your dad massive amounts of money.

cheapdad00 said: Anyone have any experiences as to being dependant/independent has on trying to establish residency in state where school is located in order to obtain in-state tuition rates? E.G. if you are not listed as a dependant on parents tax returns will that give you a more favorable chance of getting approved forin-state tuition rates. I failed miserably at trying to get in state tuition rates 15 years ago, even though I ended up staying in-state after I graduated.

If you do a google search for "your state residency for tuition purposes manual" Should bring up a pdf or something similar or at least that worked for NC where I live. There are actually quite a few different reasons you can use to make a claim for instate tuition. I beleive in the NC manual it did say they took into account if you're primary source of funds (don't remember what exactly they called it) Was out of state.

There were alot of factors they take into consideration for instance I got instate tuition because I moved to NC when we got married and she was already a resident. We met on eharmoney... Was a very painless for me 1 form copies of her state tax returns and both of our drivers licenses. There was no place on the form for the reason I should get instate tuition so I typed a breif letter cited page and paragraph in the manual covering our situation got a letter back a month later giving me instate tuition.

It's important to read through your states manual and figure it out for yourself no one told me about that provision so it is unlikely that anyone will tell you about any provisions that will work for you.

geoncic said: berlinsmommy said: If he does not claim you, could you lose eligibility to be on your family's health plan?

ahh, good point. Though I never get sick or hurt But there always is that risk, so that's worth something.


Invincibility is common in younger years.
Your view on that will change as you get older.
I won't even comment on the statement that your Dad owes you money.

Your family should collectively pay Uncle Sam as little as possible. Let mom & dad keep claiming you for as long as it makes the most financial sense to do so. Then calculate your taxes both ways (I suggest you grow up and learn to do your own taxes now) and bill your parents for the extra taxes you pay without the personal exemption.

mistycoupon said: geoncic said: berlinsmommy said: If he does not claim you, could you lose eligibility to be on your family's health plan?

ahh, good point. Though I never get sick or hurt But there always is that risk, so that's worth something.


Invincibility is common in younger years.
Your view on that will change as you get older.
I won't even comment on the statement that your Dad owes you money.


I didn't mean to seem ungrateful for him raising me. I know he's given me a lot. I was a very cheap kid to raise compared to most. Bought my own car, and have been fully supporting myself since I was old enough to work. And growing up I did enough daily chores to more than cover for food and clothing I recieved.

I'm also his retirement plan...



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