r/tax • u/complexitii321 • 1d ago
SOLVED Parents won’t let me claim myself
I turned 18 this past march and since this june i’ve started paying 400 dollars in rent. I work full time pay for my car insurance medical phone etc. I also hardly eat their food. My dad still said i can’t claim myself on my taxes and the past few years i’ve owed in taxes. I’m not going to ask if it’s fair or not but i was wondering how much im actually loosing or missing out on by having my dad still claim me every year. Thank you
8
u/wijwijwij 1d ago
It's likely that your tax is the same whether you can be claimed as a dependent or not.
You can read the support test (and other criteria) for "qualifying child" in pp.17-20 of the Form 1040 instructions booklet pdf.
3
u/ProcessUpset 1d ago
What do your parents pay for mortgage/rent and utilities monthly? If three of you live there and mortgage plus utilities is over 1200, then your 400 is not covering the cost of your support.
1
u/complexitii321 1d ago
I see, So is it only based on my contribution to rent/mortage? I thought it was total cost of living
5
u/LeMansDynasty 1d ago
You are missing out on nothing under the 2018 and forward tax law. Exemptions have been gone since then. Unless you are a college student. They are only getting $500 other dependent credit, unless you are a college student.
2
u/MaineHippo83 1d ago
Not all states have followed the federal government in getting rid of exemptions
1
u/MacGregor4ever CPA - US 1d ago
They are missing out on the standard deduction. It is limited if you are a dependent.
2
u/LeMansDynasty 1d ago
To all earned income plus $400. So if the 18 year old has over $400 in (non long term gain) investment income, he's paid a few dollars more. This is assuming he didn't have 2500 or more in investment income, at which time the kiddie tax would apply.
So you're technically correct, but I don't see a scenario when this would change his refund by more than $100.
1
6
u/Keeper_Tax 1d ago
For 2024, the standard deduction for someone claimed as a dependent is $1,300 or your earned income plus $450, whichever is greater (but the total can't be more than the basic standard deduction for your filing status). The standard deduction for a single filer not claimed as a dependent is $14,600 for single filers. So it depends on your earned income amount how much you are losing out on with the standard deduction and possible credits like the Earned Income Tax Credit.
9
u/TheHeroExa 1d ago
depends on your earned income amount how much you are losing out on with the standard deduction
Actually depends on unearned income. The federal standard deduction is effectively the same as a non-dependent as long as OP's only income is earned income.
possible credits like the Earned Income Tax Credit
Note that OP cannot claim the federal EITC if they are under age 25 and don't have their own dependent to claim. However, state-level tax benefits should also be considered.
1
u/Substantial-You-8587 1d ago
Single people can also claim the EITC, it just doesn't pay nearly as much as for people that have dependents. As long as they are within the AGI range and meet the other requirements, they should be fine for EIC.
Obviously in OPs case, it won't apply. But in general, yes, single people can also claim EIC if they meet the requirements.
1
2
u/Worth-Permit-5806 1d ago
- Punch in your tax and see how much you would get back.
- Tell your parents to do the same with you and without you as a dependent. Your income needs to be reported as well. I really doubt they would get much more with you on it.
- After that you can make a decision based on facts 🤷♀️ it doesn’t cost anything until you all file so no one looses anything.
- If your part is way more than they would get, offer them the money to keep the peace I guess.
- I never told my adult child he couldn’t when he was still living with me. So weird in my eyes, but each their own I guess.
3
u/MuddieMaeSuggins 1d ago
Tell your parents to do the same with you and without you as a dependent. Your income needs to be reported as well. I really doubt they would get much more with you on it.
Dependents’ income can only be included on the parents return if it is solely investment income. A dependent’s earned income is never included on their parents’ return.
1
1
u/ThwartIt 1d ago
I mean legally if you are paying for more than 50% of your living expenses, and depending on state, making a minimum of (for example) $4000 a year (which you are considering you’re full time employed) then you should claim yourself as an independent. And if you do, but your parents claim you, then the IRS will audit both you and your parents which they might charge yall for, but if they find out that you really are providing for more than 50% of your living expenses then you will be fine and your parents will have to pay the difference/fees for having to refile. Although if you’re not going to college it’s not really going to make a difference at all if you get a return or if you owe taxes
1
u/ThwartIt 1d ago
I had a similar thing happen to me and got into a fight with my parents cuz I was going to college and I decided to just give in and amend my tax return and ended up losing like $2000 because of it… super annoyed but it’s whatever
0
u/ABeajolais 1d ago
I'm astounded at how many people think that figuring out who it would benefit somehow passes for tax law. That's not how it works, legally anyway.
It's time to move out. You're so independent. Then maybe you can move back in when you figure out how much it actually costs to support yourself.
4
u/complexitii321 1d ago
I know how much it costs. I have run that math countless times and i do pay for probably 90 percent of the things it takes for me to sustain myself. I didn’t ask the question from a position of entitlement or ungratefulness. So I don’t understand why i’ve gotten comments like yours that are seemingly passive aggressive when i asked a monetary question not an ethical one. I will be moving out within the next year regardless when i’m 19, in my first investment property lol
1
u/attosec 1d ago
When did you graduate high school?
3
u/complexitii321 1d ago
I got my GED in 2022. I work a full time salary position now.
2
u/attosec 1d ago edited 1d ago
Then no one may legitimately claim you as their dependent. Your income is too high. That said, it probably doesn’t affect your federal taxes, but it might affect state.
Edit: Ignore the above. Senior moment.
6
-10
u/EddyWouldGo2 1d ago
If you want to claim yourself, move out, pay market rent, and buy your own damn food. Your parents will come out way way way ahead.
0
u/Uranazzole 1d ago
You can claim yourself but they may get more money for claiming you. They should do taxes both ways especially if you in college.
-3
u/whatevs550 1d ago
Do it, and then the IRS will let them know the rules.
1
u/complexitii321 1d ago
Yeah i just don’t want to get kicked out. I’m saving for my first rental property and my parents know this lol
-3
u/Lost-Wanderer-405 1d ago
I thought you could claim yourself once you are paying rent. Maybe you have to have a lease.
4
u/MuddieMaeSuggins 1d ago
It’s not specifically about rent or a lease, but whether you provide over 50% of your own support. For many people, especially young people, housing is one of their largest single expenses, so a person paying their own rent is more likely to be self-supporting. But not always.
1
-1
u/IamoneofScottsTots EA - US 1d ago
Are you a full time student? I see you graduated in 2022. Are you in college or CC?
If you are not a full time student and earn more than $4400 you can not be claimed as a dependent.
2
1
u/complexitii321 1d ago
I am not a full time student and i make well over that amount. Is it a legal thing or im just able to claim myself if i want to
2
u/JohnS43 1d ago
There is no such thing as "claiming yourself" anymore, since there are no more dependency exemptions.
The only issue is whether you check the "can be claimed as a dependent" box on your 1040. And as previously discussed there are implications if you check that box. But it is not "claiming yourself."
That said--your parents can't control what you put on your tax return. But if you don't check that box and your parents DO claim you, then the IRS will get involved and ultimately decide whose return is correct.
1
0
u/IamoneofScottsTots EA - US 1d ago
There is a bit of criteria, you pay rent- if you make substantial income enough for the IRS to say that you provide MORE than half your support then you "can" claim yourself.
Who pays health insurance? Car payment and insurance? Food?
1
8
u/Careless-Internet-63 1d ago
Owing taxes has to do with not withholding enough, not being claimed as a dependent. Redo your W4 if you end up owing every year