Q. i am wondering how that would affect my schools financial aid?
A. Not really a tax question. You'l need to seek advice at other forums or directly from the school's financial aid office
Q. also still live with my parents which is why I though I could claim their dependent (my sibling)?
A. That's actually correct. A child can be the “qualifying child” dependent of any close relative in the household. But there are additional rules that must be met (#6 in particular). A child closely related (sibling counts) to a taxpayer can be a “Qualifying Child (QC)” dependent, regardless of the child's income, if:
- He is under age 19, or under 24 if a full time student for at least 5 months of the year, or is totally & permanently disabled
- He did not provide more than 1/2 his own support (note that there is no requirement for you to have provided support)
- He lived with the relative (including temporary absences) for more than half the year
- He is younger than the relative (not applicable for a disabled child)
- If the child meets the rules to be a qualifying child of more than one person, you must be the person entitled to claim the child as a qualifying child (this essentially means that you have the parent’s permission to claim the child, if the child also lived with the parent more than half the year)
- If the parents of a child can claim the child as a qualifying child but no parent so claims the child, no one else can claim the child as a qualifying child unless that person's adjusted gross income (AGI) is higher than the highest AGI of any of the child's parents who can claim the child.
Q. Would I have to do my taxes again or is the way they are filed fine?
A. You would only have to file an amended return, if you don't meet the above rules or you decide your school aid is effected (probably not). You don't "file again". You file an amended return (form 1040X). You should go back to the tax preparer to do that. It can be done on Turbotax, online, but it's not easy, if not originally done on TT. Amended returns can not be efiled. They must be printed and mailed.
Q. also still live with my parents which is why I though I would be claimed as their dependent?
A. See above rules for whether your parents can claim you. If they can (just like claiming your brother, the most important rule is that you live with them); you can not claim yourself and you can not claim any dependents of your own; so you'll have to amend to delete your sibling.
