Can I file as Independent while still on my Parents' Health Insurance?

[davinm3]

I am still a little confused as to how this works. Some of the questions here provided some answers, but they were not enough for me. I'll do my best to explain as much as I can here.

I am currently a 20 year old college student, and I am getting ready to file my 2016 Tax Return. My parents will claim me under this return, and I will have to file as a dependent. I lived in their household for, mostly, half of the year, until I moved out near the end of July. Me and my brother currently pay for expenses (rent, utilities, etc.) on our own.

I have already come to terms that I will more than likely need to file as a dependent for taxes this year (I am still unsure about this, but I might as well file as dependent to be safe). However, if I live on my own for the entirety of 2017, and I am still under my parents' health insurance plan, can they legally claim me as a dependent? I only ask this because I feel like I am not getting enough money back in my return, and they stated that I don't have a say-so in what way I file.

[CarolynB]

Hi! You have a lot going on here! I am going to do my best to answer all your questions. Lets start with who claims you as a dependent.

One requirement to claim a dependent is that you must provide more than 50% of their support, which is the cost of basic life necessities such as food, lodging, clothing, medical and dental care, education, transportation, utilities and so forth. You also have to have earned less than 4500$ for the tax year.

Being on your parents health insurance plan does not alone qualify you as their dependent. They also have to have paid more than half of what it costs for your basic life necessities. So, it does not sound like they will be able to claim you in 2017. (provided you do live independently with your brother.) You can apply this same test to 2016 if you wish.