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."
Monday, March 8, 2010
Monday, March 1, 2010
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."
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."
Subscribe to:
Posts (Atom)