Tax Return and Student Loan?
My daughter had earned income of 5000 and investment income of 2000. She was under 24 and was a full-time student last year.
1. Can we NOT claim her as dependent, even we had paid for your tuition and boarding expense?
2. My daughter is going to medical school after the summer. Someone told me if she files her tax return as independent (not being claimed as dependent), she would be able to apply for subsidized loan (pay interest after her graduation.) Is this true?
- LynneLv 68 years ago
Tro is incorrect. Tuition is part of support. It sounds like she is your dependent. If you do not claim her, she still can not claim herself if you are providing more than half of her support.
Her investment income is subject to the kiddie tax regardless of whether or not you claim her.
Financial aid rules for being dependent or independent are different from the choice you make on your tax return. I would suggest you speak with a financial aid counselor.
- troLv 78 years ago
paying for her tuition is not a part of support
support consists of her portion of rent, utilities, home phone, food, medical, clothing, entertainment and transportation
if she lives in your household 6 months and being away from home temporarily for school is still considered at home and she did not provide more than 50% of her own support, she is your dependent with the age and school attendance you mention,
$7000 is hardly providing more than 50% of her own support
once she graduates she still remains a dependent until she is 24
I am not familiar with the requirements for loans but I see a lot of posters here who are definitely not post graduate that have obtained loans
- ?Lv 78 years ago
You do not have to claim her, even if you can. If you can, she cannot claim herself, even if you do not.
She is your dependent. Given that, she cannot claim herself, even if you choose not to claim her.