Tax Return Planning & Filing Question of the Week

How much income does an unmarried dependent student have to make before he/she has to file an income tax return?

A child that can be claimed by his/her parents is entitled to a standard deduction that may not exceed the greater of $950 or the sum of the student's earned income plus $300. The maximum exclusion is equal to $5,700.

A student must file a tax return if their unearned income is greater than $950, the earned income is greater than $5,700 or if their total income exceeds the larger of $950 or earned income up to $5,400 plus $300.

"The information contained herein does not constitute advice on any personal or business income tax requirements or issues. Use of any information from this site or any other web site referred to is for general information only and does not represent personal or business tax advice either expressed or implied. You are encouraged to seek professional tax advice for personal or business income tax questions or assistance."

Tax Return Planning & Filing Question of the Week:

If I claim my daughter as a dependent because she is a full-time student, can she claim herself as a dependent when she files her own return?

No exemption is allowed to an individual that can be claimed on another taxpayer’s tax return. Students working part-time may not claim themselves on their own tax return if their parents are entitled to claim them as dependents. It does not matter if the parents actually claim the student, the student is not entitled to the deduction. A full time student that is under the age of 24 as of December 31st is eligible to be claimed on their parents’ return and is not allowed to claim an exemption for themselves.

"The information contained herein does not constitute advise on any personal or business income tax requirements or issues. Use of any information from this site or any other web site referred to is for general information only and does not represent personal or business tax advice either express or implied. You are encouraged to seek professional tax advice for personal or business income tax questions and assistance."

Notice:

The information contained herein does not constitute advise on any personal or business income tax requirements or issues. Use of any information from this site or any other web site referred to is for general information only and does not represent personal or business tax advice either express or implied. You are encouraged to seek professional tax advice for personal or business income tax questions and assistance.

Welcome to the Tax Planning, Return Preparation & Filing Informational Blog from Diane T. Coll, CPA of North Andover, Massachusetts

Welcome to this new blog I have established to help individuals and businesses learn about what questions to ask and what to even think about regarding tax planning, tax return preparation and filing. Each week I will try to post a question of interest that clients have asked me or seems to be a common source of confusion. With the tax code changing and the regulations really changing especially if you are buying a home or thinking about buying a home-or if you are a business owner…it's VERY easy to be confused-and easy to not get the information or even understand the approaches that can be taken to help you achieve your personal financial and business goals. In the meantime if you have a specific question or topic you would like me to consider please go to http://www.dianetcollcpa.com/and use comments section off the "Contact Us" link to send it in.