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What this REALLY means is if no one else WILL be taking you as a dependent
If you qualify as a dependent for your parents (and living with your parents and being still in school ARE two things that would qualify you for them) you should simply ask them if they will be taking you as a dependency exemption on THEIR tax return
You MAY want to approach it like this ... It is very probably that they have more household income on their return than what you will have on your return .... SO ...
because the dependency exemption is a reduction of income for calculating tax, it will be worth more to those in a higher tax bracket
And if they are providing houseing and other support, it might make sense to let them take it on their return
Here are the qualifying rules:
If all of these rules are met, you are your parent qualifying child and they can claim you as a dependent.
To be a qualifying child:
The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them.
The child must be (a) under age 19 at the end of the year and younger than you (or your spouse, if filing jointly), (b) under age 24 at the end of the year, a full-time student, and younger than you (or your spouse, if filing jointly), or (c) any age if permanently and totally disabled.
The child must have lived with you for more than half of the year.2
The child must not have provided more than half of his or her own support for the year.
The child is not filing a joint return for the year (unless that joint return is filed only as a claim for refund).
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.
For your documentation: http://www.irs.gov/uac/Six-Important-Facts-about-Dependents-and-Exemptions-1
Rule 2 is what I'm a little confused about. I'm a part-time student so..
Yep, was just about to drill down on that one.... just found a Journal of accountancy article that clarifies...
I would rely upon this to say (given what you've provided) that your parents will not be able to claim you this year
Well I'm definitely a part-time student. So it looks like I'm putting "1" for line A
Article was not onliy in the peer reviewed Journal of the AICPA and the accounting profession, uses tax court decisions and other rtreasury regulations that clarify and refind the sometimes ambiguous IRS publications them selves ... further this was written by
1 goes in line A for you
Here's the article for your doc.: http://www.aicpa.org/publications/taxadviser/2010/august/pages/nichols_aug-2010.aspx
If this HAS helped, I would appreciate a feedback rating of 3 (OK) or better … That's the only way they will pay us here.
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Okay thank you I have a few more questions regarding W-4 and VA-4 if that's okay with you
for line B I'm not sure if I should put "1" either b/c it asks about 3 statements. I know the first 2 i don't satisfy but i'm a little confused about the third statement which says your wages from a second job or your spouse's are $1500 or less. The word wages in the statement is confusing me. Is it referring to monthly wages or annually?
OK let me pull up the form... just a sec
Yes, that's annually ... if you read some of the other directions they provide for filling out this (and other) forms, you'll see that the default is always "annually."
FOr example, they say to gather your W-2's when filling out the W-4 .. W-2's along with all other tax reporting documents from employers (such as 1099s) are published annually
You can very safely read that to say, "Your wages from a second job or your spouse’s wages (or the total of both) are $1,500 or less, annually"
okay so I do make more that annually so do I just leave that line blank?or what are you supposed to put when you don't satisfy a line
yes, leave it blank, or you can use zero
now would you recommend me putting 0 for line C?
Yes, in your case 0 is the only choice
(I'm assuming you're not married) :)
Yes, that is correct. I guess i never mentioned that
Not specifically, but I thought that might be a good guess given the rest of the fact pattern (NOT a given, though)
By the way, here's an excellent article: http://taxes.about.com/od/preparingyourtaxes/ht/W4.htm (Don't over-read. I don't mind hanging with you here, it will just provide a little more context)
what's the deductions and adjustments worksheet all about?should i fill that out too?
I'm so sorry, but we've been at this for over 45 minutes now, and I have a 3:30 meeting (for which I need to prepare) ... What I can do is move us to the "Q&A mode," where we can continue to talk, just not in real-time chat as we can here) I will be checking back in around 5:00
No, given your situation, there would be no need
This is for truly atypical situation where someone is, say, a business owner and knows they're going to have a lot of offsetting losses, for example
Once you've done the mat anc completed the W-4 itself, you're done
no problem i'm in no big rush and you're being really helpful thank you
sorry for the typos ... done the "math and ..."
I'll move us now a,d then check back in a little later ... should be breaking out by around 5;00 (ea)
Don't rate yet (unless you have everything you need)
Again, be back on in just a while
Can you please explain line 7 of the W-4 to me? the one that starts by saying "i claim exemption from withholding for 2013...."
oh ok so if i've properly done my taxes and will continue to do so then i can write exempt?
If you’d like to work with me again, just say “For Lane only …” at the beginning of your question, and I’ll get the alert.