Income Tax - Dependent question

[QC]

I still have to go get my taxes done. My 20 year old also wants to mail in his 1040EZ. Last year it was better for me to take the deduction for him instead of him filing for his refund. Is there a standard rule of thumb for where this crosses over? He is due a refund of $590 if he files on his own, but I will simply pay him that if it is worth more for me to take the deduction. He is a full-time student.

 

[JustJason]

Re: Income Tax - Dependent question

If he is a full time student, especially if he lives at home and not on a campus he is paying for, and if you in some way are paying for his education you absolutely CAN claim him as a dependent.
But do your taxes twice, with and without him. See what works better for you. I have to imagine you'll get much more back than 590. If he files as a "head of houshold/non dependent" what would his return be? Half the 590?

I still have to go get my taxes done. My 20 year old also wants to mail in his 1040EZ. Last year it was better for me to take the deduction for him instead of him filing for his refund. Is there a standard rule of thumb for where this crosses over? He is due a refund of $590 if he files on his own, but I will simply pay him that if it is worth more for me to take the deduction. He is a full-time student.

 

[QC]

Re: Income Tax - Dependent question

I guess I was trying to avoid doing the taxes first to figure this out . . . Trying to determine if I should let my son file his return including his personal deduction or if I should just pay him and then get mine done. Is it as simple as the value of me taking the deduction with him as a dependent vs. what that does to his return?

 

[JustJason]

Re: Income Tax - Dependent question

Well, your son has to file either way. I've always used turbotax. When you use turbotax it takes all of a minute to add/subtract dependents, and when you do you can see your refund dollars change in real time. you don't have to wait untill the end of the return.
Tell your son to pony up 30 bucks and you cough up 30 as well and split a copy of the turbotax. I guess if your doing your taxes on paper I can see what you mean, it would be a headache to figure it all out.
If your return is not to difficult you can probably get yours done in an hour or so. Your sons can probably get done on half that. It's the only way I know of to see what works best for you.
There has to be 1 lurker on here that's actually a CPA.

 

[Bob_VT]

Re: Income Tax - Dependent question

I use an accountant :redface: Jason good suggestion for the CPA lurking but he/she would have to have a specialty in taxes.....

 

[QC]

Re: Income Tax - Dependent question

I actually go to an accountant and my appointment is not for another week and of course my kid wants money . . . We have some outside income from my mom to my wife, business miles etc. etc. I've always felt better having a signature on my return from a "preparer".

There has to be 1 lurker on here that's actually a CPA.

That's what I was thinking . . .

 

[gss036]

Re: Income Tax - Dependent question

It depends, not the answer you wanted to hear I know. Depends on his gross income, chances are you can still claim him as a dependant and he will still file his and get his money also. There many deductions out there for education. I am sure your accountant will figure that into the return.
If it were me I would tell him to file his 1040EZ and simply mark that he can be claimed on some elses return. He can probably go to IRS site and vet out a free filing w/o any hassle, including electronic filing. Go to Turbo Tax site and using thier free one. If he is in college and wants his money, surely he can figure that one out.

 

[JustJason]

Re: Income Tax - Dependent question

actually you should be able to go to turbotax online and just play with some numbers without actually fileing anything.

 

[BoatBuoy]

Re: Income Tax - Dependent question

Yep, with Turbo Tax online, you only pay at the end when you print. Up to that point, there's a running total (+/-) in the upper right.

 

[tx1961whaler]

Re: Income Tax - Dependent question

If your son has income, he is required to file an income tax return. It does not matter if he is claimed as a dependent or not. If somebody turns in a W2 or 1099 in his name, and he doesn't file, then there will be issues.

 

[QC]

Re: Income Tax - Dependent question

Roger, I chose my words poorly. Now I think based on his wages, that he will get all of it back even if he shows that someone else is claiming him as a dependent.

 

[bassman284]

Re: Income Tax - Dependent question

There really isn't a choice here. It comes down to whether you or he provided more than half his support.