Comments on: Should I feel guilty that I filed as Independent on my Taxes? http://www.mobilemerchantaccount.net/should-i-feel-guilty-that-i-filed-as-independent-on-my-taxes The Best In Telephone Credit Card Processing Sat, 11 Feb 2012 07:57:42 +0000 http://wordpress.org/?v=2.7.1 hourly 1 By: I_think$ http://www.mobilemerchantaccount.net/should-i-feel-guilty-that-i-filed-as-independent-on-my-taxes/comment-page-1#comment-1216 I_think$ Thu, 25 Mar 2010 18:10:57 +0000 http://www.mobilemerchantaccount.net/should-i-feel-guilty-that-i-filed-as-independent-on-my-taxes#comment-1216 Changed my mind. YES, guilty, because you acted out of spite. Conferring with your parents to determine your real status would have been a good idea because, besides the education credit, the deduction for you as a dependent would be worth more to them due to them being in a higher tax bracket if your status as dependent was allowed, AND b/c of the potential legal issues {see Edit.} You need to be an adult and tell them how you filed so they don't claim you and get nasty messages (and fines and penalties) from the IRS in the future. And / or needed corrections can be made. {See EDIT.} P S Maxing out your credit card can hurt you if you are not careful. You better make nice with your parents, or you will have to drop out of school to work and support yourself. Try for government loans (FAFSA forms, etc). NOTICE: I cannot give specific advice for you to rely on. [<< my waiver.] EDIT: Pub 17 (and other places) outline what it takes to be a dependent on your parents return. On pg 28 it does say that a dependent (possibly you) is not allowed a personal exemption* if the [parent] is allowed the exemption, whether or not the [parents] take it. This must imply that legally you must be a dependent if you qualify and so cannot emancipate yourself even if you want to ("damn the consequences") and file single. The trick is, how would the IRS know if you passed or failed the dependency test unless they audited you and your parents did not back up your story (although your income and living at home would give them a clue). [I am NOT advocating you lie b/c the long arm of the law scares me.] You could call or write the IRS to get an answer although you need patience if you do so. I rated this as an "interesting question." One last PERSONAL thought re the whole discussion: Because the IRS would get less tax revenue with your parents claiming you than they would with you claiming yourself, I don't see why they would care (but who knows?) *but you can and do file to get over withheld taxes refunded. Changed my mind. YES, guilty, because you acted out of spite. Conferring with your parents to determine your real status would have been a good idea because, besides the education credit, the deduction for you as a dependent would be worth more to them due to them being in a higher tax bracket if your status as dependent was allowed, AND b/c of the potential legal issues {see Edit.}

You need to be an adult and tell them how you filed so they don’t claim you and get nasty messages (and fines and penalties) from the IRS in the future. And / or needed corrections can be made. {See EDIT.}

P S Maxing out your credit card can hurt you if you are not careful. You better make nice with your parents, or you will have to drop out of school to work and support yourself. Try for government loans (FAFSA forms, etc).

NOTICE: I cannot give specific advice for you to rely on. [<< my waiver.]

EDIT: Pub 17 (and other places) outline what it takes to be a dependent on your parents return. On pg 28 it does say that a dependent (possibly you) is not allowed a personal exemption* if the [parent] is allowed the exemption, whether or not the [parents] take it. This must imply that legally you must be a dependent if you qualify and so cannot emancipate yourself even if you want to ("damn the consequences") and file single. The trick is, how would the IRS know if you passed or failed the dependency test unless they audited you and your parents did not back up your story (although your income and living at home would give them a clue). [I am NOT advocating you lie b/c the long arm of the law scares me.] You could call or write the IRS to get an answer although you need patience if you do so. I rated this as an "interesting question."

One last PERSONAL thought re the whole discussion: Because the IRS would get less tax revenue with your parents claiming you than they would with you claiming yourself, I don’t see why they would care (but who knows?)

*but you can and do file to get over withheld taxes refunded.

]]> By: the tax lady http://www.mobilemerchantaccount.net/should-i-feel-guilty-that-i-filed-as-independent-on-my-taxes/comment-page-1#comment-1217 the tax lady Thu, 25 Mar 2010 18:10:57 +0000 http://www.mobilemerchantaccount.net/should-i-feel-guilty-that-i-filed-as-independent-on-my-taxes#comment-1217 No where in your post do you indicate that you did the support test on page 20 of IRS publication 501. If you and your parents fill that out and it shows that you *did* support yourself, fine, could claim your own exemption. If you even paid more than half of your support from wages, you could be eligible for the refundable part of the American Opporunity Credit. if you did NOT support yourself, you MUST amend. There's no ability to just feel guilty about it. If you did NOT support yourself, you filed illegally. I think you would be shocked how much it costs to run a household. You cannot ignore the value of the cost of living with your parents. The rent you didn't pay is still part of your support (it's calculated as total costs divided by the number of people living there). No where in your post do you indicate that you did the support test on page 20 of IRS publication 501. If you and your parents fill that out and it shows that you *did* support yourself, fine, could claim your own exemption. If you even paid more than half of your support from wages, you could be eligible for the refundable part of the American Opporunity Credit.

if you did NOT support yourself, you MUST amend. There’s no ability to just feel guilty about it. If you did NOT support yourself, you filed illegally.

I think you would be shocked how much it costs to run a household. You cannot ignore the value of the cost of living with your parents. The rent you didn’t pay is still part of your support (it’s calculated as total costs divided by the number of people living there).

]]> By: card-ron http://www.mobilemerchantaccount.net/should-i-feel-guilty-that-i-filed-as-independent-on-my-taxes/comment-page-1#comment-1218 card-ron Thu, 25 Mar 2010 18:10:57 +0000 http://www.mobilemerchantaccount.net/should-i-feel-guilty-that-i-filed-as-independent-on-my-taxes#comment-1218 If you can be legally claimed as a dependent on your parent's tax return, then yes you should feel guilty. You should feel guilty because you are guilty of breaking federal tax law. You should also be concerned about how you will pay back that portion of the refund you fraudulently obtained. Your parents can still file their taxes and claim you as a dependent. If they do, the IRS will send letters to both of you asking for further information and the IRS will determine whether or not you are a dependent. If they decide you are your parent's dependent, then they will bill you for the portion of the refund you received but shouldn't have, along with interest and penalties. It is not too late to file an amended return, report your self correctly, and pay back any money you owe. If you do this before April 15 there will be no interest or penalties from the IRS. If you can be legally claimed as a dependent on your parent’s tax return, then yes you should feel guilty. You should feel guilty because you are guilty of breaking federal tax law. You should also be concerned about how you will pay back that portion of the refund you fraudulently obtained. Your parents can still file their taxes and claim you as a dependent. If they do, the IRS will send letters to both of you asking for further information and the IRS will determine whether or not you are a dependent. If they decide you are your parent’s dependent, then they will bill you for the portion of the refund you received but shouldn’t have, along with interest and penalties.

It is not too late to file an amended return, report your self correctly, and pay back any money you owe. If you do this before April 15 there will be no interest or penalties from the IRS.

]]> By: ninasgramma http://www.mobilemerchantaccount.net/should-i-feel-guilty-that-i-filed-as-independent-on-my-taxes/comment-page-1#comment-1219 ninasgramma Thu, 25 Mar 2010 18:10:57 +0000 http://www.mobilemerchantaccount.net/should-i-feel-guilty-that-i-filed-as-independent-on-my-taxes#comment-1219 If you provide for over half of your own support, then you can claim your own exemption. If your loan plus the money you spent on your expenses is more than half of your parents' income, then it is likely that you did provide over half of your support. Otherwise, your parents qualify to claim you since you lived rent-free in their home. If you do not qualify to claim yourself, then amend your return. If your parents are going to claim you, they will need to file a mail-in return because their return will be rejected if they efile even if you amend your return. If you provide for over half of your own support, then you can claim your own exemption. If your loan plus the money you spent on your expenses is more than half of your parents’ income, then it is likely that you did provide over half of your support. Otherwise, your parents qualify to claim you since you lived rent-free in their home.

If you do not qualify to claim yourself, then amend your return.

If your parents are going to claim you, they will need to file a mail-in return because their return will be rejected if they efile even if you amend your return.

]]> By: StephenWeinstein http://www.mobilemerchantaccount.net/should-i-feel-guilty-that-i-filed-as-independent-on-my-taxes/comment-page-1#comment-1220 StephenWeinstein Thu, 25 Mar 2010 18:10:57 +0000 http://www.mobilemerchantaccount.net/should-i-feel-guilty-that-i-filed-as-independent-on-my-taxes#comment-1220 If, according to the Internal Revenue Code of the United States of America, they were entitled to claim you, then it was illegal for you to file as independent (so you should feel guilty about breaking the law) you must amend your return, and must return the money that you received improperly (after which you should no longer feel guilty). If, according to the Internal Revenue Code of the United States of America, they were not entitled to claim you, then it would have been illegal for them to claim you or receive extra money for you living with them, and you should not feel guilty about preventing them from breaking the law. If, according to the Internal Revenue Code of the United States of America, they were entitled to claim you, then it was illegal for you to file as independent (so you should feel guilty about breaking the law) you must amend your return, and must return the money that you received improperly (after which you should no longer feel guilty).

If, according to the Internal Revenue Code of the United States of America, they were not entitled to claim you, then it would have been illegal for them to claim you or receive extra money for you living with them, and you should not feel guilty about preventing them from breaking the law.

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