For income tax purposes you either are or are not a dependent according to the IRS rules which may or may not be the same definition for FASFA ... but if you are no longer applying for school loans then it doesn't matter. https://www.fastweb.com/financial-aid/articles/does-dependency-status-on-income-tax-returns-affect-financial-aid-eligibility
Please see this Turbo Tax FAQ for more information on dependents.
If you were under age 24 and a full time student for 5 months in 2020 and did not provide more than half of your support you can be claimed as a dependent.
Either you qualify to be a dependent or you do not ... if you do then you MUST indicate that on the return even if your parents will not claim you ... those are the rules....
I fear this is going to be a real issue this year...where folks are not going to claim legal dependents so they can get the stimulus checks illegally.
The law states that if you are legally a dependent then you are not legally eligible for the stimulus check even if you are not claimed as a dependent. The TT program specifically asks CAN you be claimed as a dependent and if you answer yes then it ask if you WILL be claimed. The first question eliminates your ability to get the stimulus credit and the second will allow you to get the non refundable portion of the education credit.
Please see the rules for who you can claim as a dependent:
An unmarried dependent student must file a tax return if his or her earned or unearned income exceeds certain limits. To find these limits, refer to Dependents under Who Must File in Publication 501, Dependents, Standard Deduction and Filing Information. You can also refer to Do I Need to File a Tax Return? to see if your income requires you to file.
Even if you don't have to file a federal income tax return, you should file if you can get money back (for example, you had federal income tax withheld from your pay or you qualify for a refundable tax credit).
IRS interview to help determine who can be claimed:
https://www.irs.gov/help/ita/who-can-i-claim-as-a-dependent
https://ttlc.intuit.com/questions/3113432-who-can-i-claim-as-my-dependent
I paid for myself completely, but my parents are stating I must stay as dependent due to FAFSA. Is this true or can I claim myself as independent.
Dependency for the IRS and FAFSA are different issues. See here:
https://studentaid.gov/sites/default/files/fafsa-dependency.pdf
For income tax purposes you either are or are not a dependent according to the IRS rules which may or may not be the same definition for FASFA ... but if you are no longer applying for school loans then it doesn't matter. https://www.fastweb.com/financial-aid/articles/does-dependency-status-on-income-tax-returns-affect-financial-aid-eligibility