Not trying to influence here. Just trying to educate and inform. The following is assumed to be true:
On Dec 31 of the tax year you were:
Under the age of 19
********OR*******
Under the age of 24 and;
Enrolled in a qualified institution and;
Enrolled in a course of study that will lead to a degree or credentialed certification and;
A full time student for any one semester that started in the tax year and;
Had a job or were self-employed, thus earning enough money in that tax year to justify your claim of providing more than half of your own support for that tax year.
If *ALL* of the above is not true, then your parents qualify to claim you as a dependent on their tax return. Take special note here:
- Scholarships, grants, 529 funds, gifts from Aunt Mary, money from mom and dad *do* *not* *count* for the student providing their own support. If the student did not *earn* it, then it's considered third party support. There are only two possible ways the student can provide more than have of their own support.
1-Student is self-employed or has a W-2 job and earned enough to justify a claim.
2-Student is the *Primary* borrower on a qualified student loan, and sufficient funds were distributed to the student during the tax year to justify their claim.
- It is perfectly possible for the student to earn a million dollars (literally!) and still not provide more than half of their own support. For example, if the student has $80,000 in grants, scholarships and 529 distributions, yet their cost for support during the year (including tuition) is only $60,000, then there is no way on this green earth the student provided more than half of their own support. In fact, in this scenario the student didn't provide one single penny of their own support.
So if you are "in fact" a student living at home, if you claim you provided your own support you can fully expect to be called out on it by the IRS 24-36 months after you file the tax return. Additionally, you will find that you will not get anywhere close to the education deductions and credits that your parents get if you qualify as their dependent, and they claim you as their dependent.
- As a student meeting the above requirements, your earnings do not matter in determining if your parent's qualify to claim you as a dependent. So the $4,200 earnings limit does not apply to a college student that meets the above requirements.
