I am sorry yet to bother again...
My brain is having a hard time to understand.
Would the amount of tax that need to be paid be more if the parents claim the student dependent versus if they did claim the student ? And what if the student isn’t a dependent ?
I am wondering how the taxes that need to be paid before considering the credits and deductions (do they even qualify for any?) or any eligibilities to save on tax will compare for the different cases:
-if the student’s unemployment benefits of around $31,600
(after the exclusion of $10,200 will be applied even if under the parents’ claim?)
will add to the parents income and end up causing the taxes that need to be paid to be higher
(My thought process that might be using the wrong items?:
(the unemployment benefits + the parents AGI ) x tax )
Versus
-the amount to be paid from the student’s unemployment after the $10,200 exclusion since they have no earned income to add to before applying tax.
(31,600 - 10,200) x tax should be less to be owed than above?
I am not sure if I am processing this right.
If the tax savings are more when claiming the student as dependent, won’t it end up not being as beneficial in the end if the amount owed is more than when not claiming the student as a dependent?
since the tax savings are just to deduct from how much tax is owed?
Am I missing any possible eligibilities that will help in having more refund and less tax liability?
I am confused on what the end result would be for different cases or when the student is claimed or not, or when the student is not claimed and not dependent because of being able to contribute to support.
What will help the end amount owed and refunds the best?
If my questions don’t make sense, please let me know! My mind is a knot trying to understand it all.
Thank you by the way for being so patient and so helpful so far! It really makes me feel less alone in trying to navigate through these tough sea of tax rules! I really appreciate all the help so far.
@Hal_Al
@Hal_Al
