Filing taxes: Independent or Dependent? I'm confused.

[dds2013]

Alright, so I need to file my taxes ASAP so that I can get going on finding put how I’m gonna finance my tuition for dental school and apply the FAFSA.

I have one important question: Should I file as an independent or a dependent (dependent on my parents)? My family CPA said that I can go either way. I remember FinAid advisors at d-school interviews saying the gov’t considers all Professional students independent no matter what. So, does it really matter? I’m confused on what are the pros and cons of going either way. Please help.

I also remember her saying that it would be well worth it for you to submit your parents' info on FAFSA (even if you are poor and they are super rich), bc if you don't, you will not be considered for some type of loan (i forgot name) that has a much lower interest rate than GradPLUS.

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[GNF8300]

For professional school FAFSA-related loans, you have to have your parents' financial information. As to whether or not to file as your parents' dependent for tax purposes, it depends on you financial situation. If you want, send me a PM, and I can let you know a little more about your options. It's essentially a matter of who would get more money back as a result of the filing status you choose.

 

[jay47]

I could be wrong, but I'm pretty sure that if you are attending any professional school, you are definitely considered an independent (see here- http://www.fafsa.ed.gov/FOTWWebApp/fotw0910/WorksheetServlet?locale=en_US&wstype=WSDEP )

I don't think it matters too much either way. I'm still a dependent, and I called my schools financial aid office, and she told me it didn't matter if I filed as a dependent or independent with my taxes. I don't make much money anyways.

 

[Jessi4eve]

Assuming you don't make much money, file youself as independent if your parent make more than 50k. If not, then file yourself an dependent, so that your parents will get more tax return.

 

[GNF8300]

OK. Since I can forsee this being an issue for several people, and I have time at work to lay this out, here are the basics of whether or not you should file your own tax return if you are claimed as your parents dependent, which is possible up to age 24 if they provide your support and you're a full-time student (they get your personal exemption and the benefit of your education credits). The two main reasons are as follows:

-If you made more than $5450 last year, you have to file your own tax return

-If your passive income (think interest) was more than $900 last year, you have to file your own tax return

If you made less than the $5450 or $900 and had any federal taxes withheld, then you should also file in order to get that money back. Since your parents are claiming you as a dependent, then you MUST NOT check box 6a on the 1040 because your parents will be taking your personal exemption.

 

[dds2013]

Jay47, you are correct, we are all considered independents whether we file as independents or dependents.

GNF8300, thank you so much for taking the time to explain this. Ok, here's my situation: My parents made over 125,000 last year. I however only made $4800 last year (which was only when I worked in the summer). Also, I am definitely going to put my parents' income on FAFSA so that I can try to get those Health Professional School Loans (I think that's the name).

GNF8300, based on the advice you gave and on my information, I think it is based to file as an independent so that I can see if I'm eligible to get some of that money the gov't took from me.

What do you guys suggest?

 

[GNF8300]

If do you file your own taxes (claiming yourself), then you'll get all of the money federally withheld from you. Each person filing single and claiming themself has a $5450 standard deduction. Since your income was lower than this amount, you don't have any taxable income, so all of your federal withholding will be due back to you.

 

[dds2013]

If do you file your own taxes (claiming yourself), then you'll get all of the money federally withheld from you. Each person filing single and claiming themself has a $5450 standard deduction. Since your income was lower than this amount, you don't have any taxable income, so all of your federal withholding will be due back to you.

Thank you so much man!!! Dam, SDN you start a tax forum, we have many students that can definately help others when it comes to taxes.

Thanks again GNF8300.

 

[GNF8300]

Happy to help. Right now, my job is basically hurry up and wait trying to meet IRS drain times, so if anybody else wants basic tax info, just let me know.

 

[predentstud]

Ok can someone make sure I am understanding this correct then...on FASFA I can put independent but when doing my taxes I can put Dependent on my parents...?

 

[dds2013]

Ok can someone make sure I am understanding this correct then...on FASFA I can put independent but when doing my taxes I can put Dependent on my parents...?

Go to the website provided by jay47 and determine whether you are an independent or a dependent (they will give you the results after you answer some basic questions). All of us are going to answer YES to Q3 on the link provided by jay 47, and that automatically makes us independents.

Now, when you are doing you taxes you need to determine what is better for you and your family based on the advice provided by GNF8300.

This is what i understand: when filing your taxes, you need to decide whether you want to be considered an independent or a dependent. When filing your FAFSA, we are all considered independents.

Someone correct me if i'm wrong. Thanks.

 

[Chesnok]

Do I have to fill out taxes if I didn't work a single day (for a paycheck) last year OR I need to do that regardless?

Thanks for replying.

 

[GNF8300]

You don't need to file taxes as far as the IRS is concerned, but I don't know if you need to for the FAFSA or not. I'm the IRS guy; you need a FAFSA guy.

 

[mamelons]

For professional school FAFSA-related loans, you have to have your parents' financial information. As to whether or not to file as your parents' dependent for tax purposes, it depends on you financial situation. If you want, send me a PM, and I can let you know a little more about your options. It's essentially a matter of who would get more money back as a result of the filing status you choose.

You do not have to put your parent's information on the FAFSA. That is only if you plan to apply for the Health Professional School scholarships, which are essentially need-based scholarships... if your parents make a decent living, you won't even qualify for these scholarships, and then you may not get the loans you need because it may show that your parents have the money to help pay for your education, even if they don't plan to.

I filed as an independent when I was accepted to dental school. You are more likely to get the loans you need (i.e. the ones the government pays interest on while you are in school) plus you can qualify for grants as well to help pay for your education. I have been able to get both subsidized and unsubsidized loans and a small grant both years I have been in dental school, solely because I am considered an independent. If I was still considered as a dependent, there is no way I would have gotten the interest-free loan that the government pays while I'm in school, and I wouldn't have received the grants either.

 

[GNF8300]

That's not true that you don't have to put in your parents' information. Every school I interviewed at said they require you to put in the information. Also, I don't think it's a good idea to assume that you won't qualify for any of the subsidized loans (gov't pays interest while in school) or unsubsidized loans (interest accrues and is then capitalized - which means the total interest accrued is added to the existing principal).

From FAFSA website help section:

"Health profession students must provide parents' information on the FAFSA. Although your parents' information is required on your application, your parents' signature is not required.
If you do not know whether your course of study is a health profession program, contact your school's financial aid office."

 

[mamelons]

That's not true that you don't have to put in your parents' information. Every school I interviewed at said they require you to put in the information. Also, I don't think it's a good idea to assume that you won't qualify for any of the subsidized loans (gov't pays interest while in school) or unsubsidized loans (interest accrues and is then capitalized - which means the total interest accrued is added to the existing principal).

From FAFSA website help section:

"Health profession students must provide parents' information on the FAFSA. Although your parents' information is required on your application, your parents' signature is not required.
If you do not know whether your course of study is a health profession program, contact your school's financial aid office."

Well... I am a second-year dental student, have gone through FAFSA twice now already for dental school, and will be for the third time this year, and I have never once provided my parent's financial information. It is not required for professional school. The only time it is required is if you are dependent or you are applying for health professional school scholarships.

Directly from the FAFSA application I am filling out:

You are considered an "independent" student because you answered "Yes" to one or more questions in step 2.You are not required to answer questions about your parents.

 

[GNF8300]

And if you click the "Need Help?" section of that same screen, then click the "Health Profession Students" link you will find what I posted.

Edit:
Also, on that very same screen it says:

Note: You may want to answer the parental questions if:

• You are a health profession student (such as a medical or nursing student), or
• Your school requires parental information from all students

I gathered from your first post that you're a second year dental student. It doesn't seem to have had any negative effects on you, but I'm clarifying for those of us filling out the application what the directions actually say.

 

[GNF8300]

FAFSA say, I obey.

 

[Gwen2819]

For professional school FAFSA-related loans, you have to have your parents' financial information. As to whether or not to file as your parents' dependent for tax purposes, it depends on you financial situation. If you want, send me a PM, and I can let you know a little more about your options. It's essentially a matter of who would get more money back as a result of the filing status you choose.

Hello,
I was searching for information about claiming independent or dependent on my taxes and I saw your post. I am an undergrad student who also works. My parents want to claim me as a dependent, but I'm not sure how it would effect me by them doing so. I think I fit into both categories to an extent. Taxes are taken out of each pay check and I know what exemption you pick will help with how much you get back on your returns. So pretty much I am wondering, by picking a certain exemption how does it effect me when claiming independent or dependent? Do I get less money back if I let them claim me?

 

[UCLAzy]

you should play around with it. have them set it up with you as a dependent and independent and see the tax difference. do the same with yours.

it's likely that they will be getting more money back if they claim you as a dependent than you would if you claimed yourself as independent. if they support you, you might just bite the bullet and get claimed as a dependent. if you're still in undergrad, the only effect it would have is the money you owe/get back.

 

[UCSFx2017]

EDIT: wait this thread is four years old...

My financial advisers said that all professional students (MD/DDS/etc.) are independent.