[apnk]

I just did my parrents taxes with TurboTax. My sister, brother, and I were claimed as dependents. My sister and I and going to college and paying for everthing books, rent, ect (little help from parents). So would our books and rent be declared in our parrents taxes or can we put them in our own taxes?

I just did my parents and sent it already (e-file), I saw a question asking for education expenses but I didnt put anything down because I thought that when my sister and I did our taxes we could put it down on our own tax returns. Today I was doing my taxes and it said that I do not qualify because I am declared as a dependant in another tax return, but isn't there a way to put them in my own tax return?

If I can't will my parents be able to declare our educational costs from last year in their taxes next year?

 

[JMT]

You or your parents should really consult with a tax advisor (which I am not), but here is some information on the Hope Tax Credit.

 

[Usagi]

If your parents are claiming you and your sister, then you do not need to file, but like JMT stated, you should consult with a tax advisor.

 

[apnk]

Quote:

Originally Posted by Usagi If your parents are claiming you and your sister, then you do not need to file, but like JMT stated, you should consult with a tax advisor.

Well if I want my $600 back from the Government, yeah I need too.

 

[Usagi]

Quote:

Originally Posted by apnk Well if I want my $600 back from the Government, yeah I need too.

Well, that's the catch. The government isn't going to give your parents child credit benefits for taking care of you and your sister and then allow you guys to file a separate tax return saying that you take care of yourselves.

Actually, you’re lucky that you filed electronically, because it caught your error. If you filed these taxes via hardcopy then the IRS would've received them both which could've sparked an audit. That is the last thing you want to happen. The IRS would go over your parent’s tax history (seven years I think) with a fine comb and would be liable for any backed taxes. Your parents would be guilty until proven innocent.

The IRS has god-like power. If they say you messed up on your taxes and owe them money…….. then you owe them money. If you don’t have the money or refuse to pay then they can simply seize your property and/or jail the person accused if they simply wished it so.

 

[Old Pa]

Makes the most sense to me to assign the credit to the individuals taxed at the highest marginal rate, which would be your parents. Under what theory are you thinking that either your books or your rent are deductible for income tax purposes?

 

[elrod-tom]

Quote:

Originally Posted by Usagi If your parents are claiming you and your sister, then you do not need to file, but like JMT stated, you should consult with a tax advisor.

Generally speaking, this is not true.

If you owe any taxes (not just any taxes over and above withholding), you always have to file. The only folks who don't have to file are those whose earnings are below the standard deduction (if available...in this case it isn't) and exemption amounts...and even they may have to file to get a refund of their withholding.

 

[elrod-tom]

Quote:

Originally Posted by Usagi Actually, you’re lucky that you filed electronically, because it caught your error. If you filed these taxes via hardcopy then the IRS would've received them both which could've sparked an audit. That is the last thing you want to happen. The IRS would go over your parent’s tax history (seven years I think) with a fine comb and would be liable for any backed taxes. Your parents would be guilty until proven innocent.

In practice, this isn't how an audit of this sort would work. About 18 months after the returns were filed, a computer might spit out green-bar paper indicating that two separate returns listed the same social security number as dependant. A correspondence audit would follow, requesting of both parties that this matter be cleared up. Interest would be assessed on any tax due based on the mistake, and the matter would pretty much be over...unless this cursory review uncovered any other evidence that might suggest the possibility of fraud or other misstatement that needed to be addressed. Something this routine (particularly for the average taxpayer - these IRS guys have cost vs revenue recovered objectives to consider) would not trigger anything like the combing over of seven years worth of returns...this sort of mistake is common and happens all the time.

Quote:

Originally Posted by Usagi The IRS has god-like power. If they say you messed up on your taxes and owe them money…….. then you owe them money. If you don’t have the money or refuse to pay then they can simply seize your property and/or jail the person accused if they simply wished it so.

This is somewhat true, though there are many more safeguards in place than just a few years ago.

Our tax system is voluntary, meaning you provide proof of your income. The whole process is a matter of civil law. However, once you start talking about putting people in jail, it becomes a matter of criminal law. The burden of proof then falls on the IRS - at that point, you are talking about tax fraud or evasion, which are far far removed from making a mistake about who is and isn't a dependant on a tax return.

I'm not saying that the IRS doesn't on occasion abuse its power and act in ways that are disproportionate to the offense. However, suggesting that this poor guy's common mistake would have resulted in anything more than a correspondence audit (letter in the mail asking for an explaination and a check if the mistake is yours) is simply wrong.

 

[PsychoZX]

Quote:

Originally Posted by Usagi Well, that's the catch. The government isn't going to give your parents child credit benefits for taking care of you and your sister and then allow you guys to file a separate tax return saying that you take care of yourselves.

Actually he would still need to file. Even if he is claimed dependent he would still get some of his refund. He just wont get as much back as he would if he was not claimed as a dependent.

 

[plus_c]

Quote:

Originally Posted by apnk I just did my parrents taxes with TurboTax. My sister, brother, and I were claimed as dependents. My sister and I and going to college and paying for everthing books, rent, ect (little help from parents). So would our books and rent be declared in our parrents taxes or can we put them in our own taxes? I just did my parents and sent it already (e-file), I saw a question asking for education expenses but I didnt put anything down because I thought that when my sister and I did our taxes we could put it down on our own tax returns. Today I was doing my taxes and it said that I do not qualify because I am declared as a dependant in another tax return, but isn't there a way to put them in my own tax return? If I can't will my parents be able to declare our educational costs from last year in their taxes next year?

I think you're stuck, at least for this year. The only thing you could do is un-declare you and your sister as dependents to claim the tax credit for yourselves, and as your parents' return is already filed, you can't do that.

And it's not like you're getting all of those expenses back in the form of a check - those expenses are deducted from your figure of adjusted gross income, so that you're not taxed on it. Next year, keep in mind that you'll either need to be not declared as a dependent on your parents' tax return, or to claim the credit on their return.

 

[apnk]

Quote:

Originally Posted by PsychoZX Actually he would still need to file. Even if he is claimed dependent he would still get some of his refund. He just wont get as much back as he would if he was not claimed as a dependent.

Yep.

I filed every year since I was 14 just to get money back. I get back what I pay in state and federal taxes. The gov. just keeps the social security taxes becuase I am under 23 or something like that and I dont make over $7,300. (I only work in th summers BTW)

Yeah I think I am screwed on my taxes, but I wish I new about that college hope credit thing for my parents.

Oh well, now any of you guys know if you can put stuff like that from last year on next years taxes? (You know for two years on one form?)

 

[elrod-tom]

You know, you might consider amending your parents' return to include the Hope Credit stuff.

I know NOTHING about the Hope Credit (my work in taxation is with corporations and partnerships almost exclusively...this is an individual matter). However, if they could receive a benefit from the credit and neglected to do so because of an error, they can certainly amend their return.

BTW - Don't let anyone scare you re) filing an amended return. It's pretty common, and I'm not aware that there is any higher incidence of audit based on whether or not a return is amended.

 

[apnk]

Quote:

Originally Posted by elrod-tom You know, you might consider amending your parents' return to include the Hope Credit stuff. I know NOTHING about the Hope Credit (my work in taxation is with corporations and partnerships almost exclusively...this is an individual matter). However, if they could receive a benefit from the credit and neglected to do so because of an error, they can certainly amend their return. BTW - Don't let anyone scare you re) filing an amended return. It's pretty common, and I'm not aware that there is any higher incidence of audit based on whether or not a return is amended.

THanks, I'll have to check that out.

 

[apnk]

UPDATE: Today I was checking the e-file status of my parents return and it was rejected! Yes! I messed up a SSN. Now I can add all of my books and crap!

 

[Jon.]

Wow if you can't get the social security number(it's not even math

) right should you even be trying to do taxes?