As you start working and making money, you are supporting yourself through your life and education. It's inevitable, and everyone goes through it. But it does look different for everyone.
You may be living with your parents, or your parents may be paying for college. Or your parents may be giving you money to help with your living expenses. Or perhaps your parents don’t give you any money at all. Read more about our thoughts about when you should and shouldn’t accept money your parents.
However, if you make money, you have to file your own 1040 income tax return. Then you get to the question that all online tax software asks: can I be claimed as a dependent on my parent’s tax return? And you think to yourself, I make my own money, they can’t claim me on their tax return! Your parents may have a different idea, and you both may end up getting a letter from the IRS as a result.
This little box on your tax return raises so many questions:
CAN your parents claim you as a dependent on their tax returns? Especially if you have a part-time or full-time job? What if you live away from home?
Let's break this down and see when they can claim you as a dependent and when they can't, and what you can do about it if having a discussion about money with your parents is a no-go.
First, you need to find out if you qualify to be claimed as a dependent.
Who Qualifies As A Dependent?
The IRS rules provide that there are really two types of dependents:
- a qualifying child
- a qualifying relative
Each type of dependent is subject to different rules, but the purpose of this article is to help you determine if you are a qualifying child. Your dependent status is especially important if you either earn your own money, or you are enrolled in school full time.
- Are you a citizen or resident?
You must be a U.S. citizen, a U.S. national, a U.S. resident, or a resident of Canada or Mexico.
- Is someone else already claiming you as a dependent?
Your parents can’t claim you as a dependent if you rightfully claim yourself (by taking your personal exemption), or if someone else claims you as a dependent (another parent if your parents are divorced, or another person).
- Are you filing a joint return?
You cannot claim someone who is married and files a joint tax return. If you are married, and you file a joint return with your spouse, your parents cannot claim you as a dependent.
Qualifying Child
In addition to the qualifications above, to claim an exemption for a dependent child, the parents must be able to answer “yes” to all of the following questions.
- Relationship Test
Any of these relationships, including biological parents, are considered as qualifying relatives for the purpose of claiming a child as a dependent. The child must be their son, daughter, stepchild, eligible foster child, brother, sister, half brother, half sister, stepbrother, stepsister, adopted child or an offspring of any of them.
- Age Test:
You must be under the age of 19 for your parents to claim you as a dependent. However, if you are a full-time student, you must be under age 24 in order for your parents to claim you as a dependent. If you are totally and permanently disabled, there is no age limit for your parents to claim you as a dependent.
- Do you live with your parents?
You must live with your parents for more than half the year, with some exceptions.
- Do your parents provide more than half of your financially?
Your job cannot provide more than half of your support.
- Are you being claimed as a dependent by someone other than your parents?
This is a common issue for children of divorced parents. Here you must use the “tie breaker rules,” which are found in Internal Revenue Service (IRS) Publication 501. These rules establish income, parentage and residency requirements for claiming a child.
Other Rules
If you are over the age of 19, and not a full time student, then your parents cannot claim you as a dependent.
There is no age limit for parents to claim their child if that child that is permanently and totally disabled.
If you are under the age of 24 and a full time student, your parents can claim you if you are enrolled as a full time student at an accredited institution, AND your parents provide more than 50% of your support.
Scholarships or grants received by the student do not count as the student providing their own support. If you did not provide 50% of your support, then you must select the option for “I can be claimed on someone else's return” even if your parents do not claim you. The IRS has a worksheet that will help you determine who provides more than 50% of the support.
Do your parents pay for your college? Do you think your parents should pay for your college? Click here to review the pros and cons of parents paying for college.
What If More Than One Person Is Supporting Me?
If your parents are divorced or separated, you will be a qualifying child of one of your parents. If you don’t meet the requirements of being a qualifying child for either parent, chances are, you can still be a qualifying relative.
In a nutshell, a child will be treated as being the qualifying relative of his or her noncustodial parent if all four of the following statements are true.
- Your parents are legally separated under a divorce decree or separate maintenance decree, or written separation agreement, or they lived apart at all times during the last 6 months of the year where they were not married.
- You received over half your support from your parents.
- You were in the custody of one or both parents for more than half the year.
- The custodial parent signs a written declaration promising not to claim the child for that year, and the noncustodial parent attaches the written declaration to his or her return.
There are special rules for divorce decrees categorized by the year of the divorce decree. For more information and specific terms, click here.
In the case of Multiple Support Agreements, two or more people combined provide for more than half a person’s support. When this happens, you can agree that any one of those people who provides more than 10% of the support can claim the child as a qualifying relative, and the person claiming the dependent must attach a multiple support declaration to their tax return.
Letting Your Parents Claim You As A Dependent Child on Their Tax Return
Once your parents claim you as a dependent on their tax return, your parents will also claim all scholarships, grants, tuition payments, and your 1098-T on their tax return.
In addition, your parents will also be able to claim all eligible educational tax credits.
What You Must Do If Your Parents Can Claim You As a Dependent:
If you earned income, but your parents still qualify to claim you as a dependent, all you have to do is select the option for “I can be claimed on someone else’s return”.
Tax Advantages for Parents Claiming You on Their Tax Return
Parents will qualify for educational credits that students potentially cannot get on their own. If your parents meet the requirements to claim you, let them! If your parents meet the requirements, but choose not to claim you, then you still have to select the option for “I can be claimed on someone else’s return” when you file your tax return.
Your parents may also be eligible for the child tax credit and the earned-income tax credit, which can result in a sizable refund or substantial tax savings.
What To Do if You Or Your Parents Made Tax Return Errors
It's sadly very common that adult children and parents don't talk – especially about money and taxes. So, what happens if your parents claimed you on their taxes and you filed for yourself? Here are the tax consequences you and your parents will face if either of you make a mistake.
First, you will both get a notice from the IRS and will need to respond with the proper documentation. If you claimed yourself, and your parents claimed you, one of you has to make the correction to the tax return. After that return is processed, the other party may file their return next.
If you file your tax return before your parents file their tax returns, their return will get rejected for the dependent exemption. If your parents file before you file your return, then your return may get rejected for claiming the self-exemption.
If either the parents or child can prove that the other party wrongfully claimed the exemption, the party proven wrong may be subject to an audit.
In 99.5% of situations, it's easier to have a simple conversation up front than have to deal with it via the IRS.
Final Thoughts
Remember, even if you want to claim the self-exemption on your tax return, you will want to go through the tests discussed above to ensure that you qualify to claim yourself, and you will also want to evaluate the tax advantages of your parents claiming you as a dependent.
The most important lesson here is that you and your parents should be on the same page, otherwise, you and your parents will have to answer to the IRS.
I’m 18 gonna be turning 19 In July. My mother is living in another state and not taking care of me. My boyfriend is paying for 100% of my living expenses since I’m a senior in highschool still. I tried talking to her about it and she threw a fit and said “I can claim you as long as I want.” At this point I’m over it and just need advice. Can he claim me? Or can she?
You need to follow the tests above to determine if your mother can claim you. From the little you’ve described here, she might not be able to. You could benefit from speaking to a tax professional. If you don’t believe she should, you can always file your return appropriately. However, it’s always best to work it out with your mother than with the IRS.
I’m 25 right now in the US, and my parents live in Mexico. For the whole of 2017, I am a graduate student part time and studying for a licence exam while my parents send me pocket money for living expenses and rent. Would I have to file a tax return for 2017? Thank you very much.
You should always file a tax return.
I am 17 and I turned my W-4 and as a dependent on accident, can I still make any changes so that my parents can claim me for taxes?
Your W4 doesn’t matter at all. You can change that as many times as you want (although you may annoy your employer). What really matters is the tax return you file.
My mother decided to file my taxes without my permission, didn’t even bother to mention it either. She didn’t provide any evidence of me working/what I made. I fear that if I do go and file my taxes I won’t be allowed or anything. I still live with her however I provide all my food/clothing/med/etc. She doesn’t support me financially or otherwise. What can I do?
Read the article – you can still file your taxes and let the IRS sort it out, or have that discussion with your mother.
I joined the military in may of 2017. My parents decided to claim me even tho i quit living with them in feb. I took care of myself since feb 17. They still claimed me on their tax return. I doubt they’ll change it if I ask them to because they are pretty greedy people. I filed mine and it said i was already claimed. How can I get this issued resolved through the IRS?
Did you eFile and it wouldn’t let you? If so, you would need to mail the return to the IRS.
hello i have a Question for you. i’m 24 years and my father still my household because i didn’t work at all. and now i need a letter from the IRS that indicate that i wasn’t file the taxes because i didn’t work. do you know how can i get it? because i do a lot of search in the IRS website but i can’t find any thing.
I’m not quite sure what you mean. The IRS doesn’t provide you a letter if you didn’t work.
If my parent claims me, and I file a tax return with that checked box, will I still receive a potential refund if they claim my education credits? I am a full time student living away from home and I’m not exactly sure how much (percentage wise) I support myself versus my parents. I have student loans and scholarships that have paid for a large portion of my schooling and some personal support expenses.
There isn’t enough information here to help you. The IRS has an interactive tool to see if you qualify as a dependent or not: https://www.irs.gov/help/ita/whom-may-i-claim-as-a-dependent
However, the best course of action is to speak with your parents.
My sister is 20 years old has a part-time job and is not in school and still lives at home with the parents they do pay for things for her but not everything I don’t know the exact percentage of how much they pay but I feel like they shouldn’t be able to claim her but I’m not sure
Sounds like they SHOULD be able to. A part time job, no school, still living at home… definitely not independent.
But can they claim her if she is 20 years old and not in school?
Yes, most likely if they provide most of her support (including housing). However, the best thing to do is speak to your parents and a tax professional with concerns.
Parents want to claim me. I’m a 23 year old part time working student who lives at home but comes out of pocket for all expenses including car, medical, etc. Will they be able to claim me as a dependent on their taxes??
Likely they can claim you (they cover your living expenses, you only work part time). However, this is something you should speak to them about and work out together as a family.
My son was a senior in high school last year, so I claimed him as a dependent. He earned 312.00 and there were no federal taxes taken out of his check, so no refund. Does he still need to file a tax return?
No.
The IRS sets a tax filing threshold each year for how much income you can make before you’re required to file a tax return. These vary by filing status, but all are significantly larger than $312. For example, for the 2017 tax year, you can make up to $10,400 if you’re single and under the age of 65 and up to $11,950 if you’re aged 65 or above before you must file taxes.
For dependents, you must file if your unearned income exceeds $1,050, your minimum earned income exceeds $6,350 or your total income exceeds the larger of $1,050 or your earned income plus $350.
Okay, that last part confused me. My daughter made$ 6185 with the National Guard. She is a full time college student and I pay most of her expenses after scholarships. I l claimed her as a dependent for 2017 . Does she need to file? She paid $618 in federal taxes in 2017. She was told she would get that back by someone. Thank you!
Yes she should still file a return as a dependent. She will likely get a refund.
I work full time and pay for all of my bills (car, car insurance, phone, invisalign) with my own income and my mom claimed me as a dependent on her taxes without me knowing and before I was able to file mine. I am filing through TurboTax app and I noticed when I select that no one else can claim me it said I get a state and federal return but when I say someone else claimed me it says I owe a big amount. Why is that and what can I do?
I forgot to mention she says she can claim me because even tho I am financially independent, I still live under her roof but i am only 21 and not a full time student so I don’t understand how she is able to claim me
If you live with her, how are you financially independent? It sounds like she is covering your housing costs, utilities, likely food, and more?
Well, you need to speak with her about whether you are her dependent or not. It sounds like you still live at home, and that’s a big part of it. Do you pay her rent? Do you have renters insurance? Do you cover your share of the utilities, food, etc. Does she provide nothing for you?
I’m not saying you’re right or wrong, and you can totally file and let the IRS sort it out, but the best thing to do is really think about your situation and discuss it with your mom.
I live on campus for 8 out of the 12 months of the year. My parents do not pay for any of my tuition and their names are not on any of my student loans. I do not come home on the weekend and they do not offer money to me for food, clothing, etc. They do however pay my phone bill, health and car insurance. We are fighting because i filed independently because I do make my own money. Can they claim me as a dependent?
It doesn’t sound like it, but you should check with a tax professional or this tool from the IRS: https://www.irs.gov/help/ita/whom-may-i-claim-as-a-dependent
I am a qualifying child of my mom who lives in Maryland but I currently reside in Illinois due to school and paid state income taxes only to Illinois because I worked there. Do I file my state income taxes as a resident or non-resident of Illinois and file as a full year resident of Maryland even though I wasn’t physically in Maryland and did not pay taxes to Maryland?
Your state residency does not change due to attending college. You should file a resident return for your home state, unless you have changed your residency. If you earned income in the state where you attend school you will also need to file a nor-resident return for the that state.