I'm a full-time college student and I reside on campus. In summer 2016, I worked at a camp and made a salary of $900 prior to taxes. That being said, I'm uncertain on whether I should/can file for myself or do I still let my sister do it. If I file for myself, will it affect my financial aide negatively? My mom hasn't been working since 2014, hence she hasn't been filing for herself for the past years. My sister claimed me in her 2015 taxes and I don't know if she planned to do so again this year. She didn't work in 2016(she just got a job in January), so is her claiming beneficial to her and not me? I'm confused and I have no idea how this works.
I'm now realizing that my mom manipulated me into not working at 18 because of taxes. I'm sorry for sounding so immature.
You cannot just "let" your sister claim you. You must meet the qualifications to be her dependent.
Okay, but can you explain? That's what I'm asking because I don't know how this works. Schools don't teach students about taxes.
One of the SuperUsers is formulating an answer., and I'm suire he will explain it.
If you meet the tests to be claimed by your sister and she is required to file a tax return, then you can't claim yourself. If she can claim you, then you must indicate on your tax return (if you file a return) that you can be claimed by someone else. Your sister would not be required to file a tax return if she had no taxable income. Even though she didn't work she might have unemployment compensation or maybe investment income. There is no benefit for you to claim yourself since you will not owe any taxes and are not required to file a tax return.
The only reason you would want to file a return with only $900 of W-2 income would be to get a refund of any federal income tax that was withheld.
For 2016 tax year, if you can be claimed by someone else, you would be required to file a tax return if you had more than $6300 of W-2 income. If you cannot be claimed by someone else and claim yourself, you would be required to file a return if you had more than $10,300 of W-2 income.
You are required to file a tax return if you had more than $400 of income reported on a 1099-MISC or no form because you must pay around 15% self employment tax on that type of income.
There are some other maximum amounts for things like interest and dividend income.
You can use this IRS tool to determine if you are required to file a tax return: <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/1901490-do-i-need-to-file-a-federal-return-this-year">https://ttlc.intuit.com/questions/1901490-do-i-need-to-file-a-federal-return-this-year</a>
Incidentally the federal tax return is a form 1040 or in some cases a shorter form 1040A or 1040EZ.
There are two types of dependents--qualifying child and qualifying relative. A full time student under the age of 24 would most often be claimed as a qualifying child dependent. Here are the tests for determining whether you can be claimed by someone else as a qualifying child dependent:
1. The child must be your son, daughter, stepchild, foster chld, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them.
2. The child must be (a) under age 19 at the end of the year, (b) under age 24 at the end of the year and a full-time student, or (c) any age and permanently and totally disabled.
3. The child must have lived with you for more than half of the year. Temporary absences while away at college are considered living with you.
4. The child must not have provided more than half of his or her own support for the year.
5. 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.
6. The child must be a U.S. citizen or U.S., Canada or Mexico resident for some portion of the year.
7. The child must be younger than you (or your spouse, if filing jointly) unless disabled.