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Q. I am 19 years old in 1999 and can be claimed as a dependent by my mom. I held a job (full time) over the summer and part time during the fall semester. I wanted to know what my gross income could be before I had to pay taxes on it.Does this amount get any higher if I'm not claimed as a dependent? Is the tax break greater for me (as a non dependent) or for my my mom (if she claims me)?
>>>>>>IR$Maven's reply:
(1) If you are taken as a dependent on your mom's tax return, you can earn up to $4,300 before you are subject to income tax. This is your Standard Deduction.
(2) If not a dependent of your mom, you could have an additional $2,750 of taxable income before being hit with any income tax. This is your Personal Exemption.
(3) The $2,750 exemption for you is worth the same no matter who claims it. However, if your mom was in a taxable income bracket higher than 15%, the tax savings would be greater for her compared to the 15% tax rate on your return.
Q.
I am a college student and have just turned 22. What is the maximum
age for my parents to be able to claim me as a dependent on their tax
return? Also, is it more beneficial for me to declare myself independent
on my tax return before graduation (May of 2000)?
>>>>>IR$Maven's Reply:
The maximum age is 23. After that, the amount of your earnings and other tests come into play. There is no apparent advantage to declare yourself independent at an early time. Your status for 2000 will be measured by the entire year.
**************************************
Q. My husband and I have been married for two months. Can I claim head of household for 10 months of the year? I was eligible to do so prior to getting married.
>>>>>>IR$Maven's reply:
Unfortunately, your marital/filing status is measured on the last day of the calendar year. Accordingly, you are required to file as married, joint.
**********************************************
Q. I am 19 years old in 1999 and can be claimed as a dependent by my mom. I held a job (full time) over the summer and part time during the fall semester. I wanted to know what my gross income could be before I had to pay taxes on it.Does this amount get any higher if I'm not claimed as a dependent? Is the tax break greater for me (as a non dependent) or for my my mom (if she claims me)?
>>>>>>IR$Maven's reply:
(1) If you are taken as a dependent on your mom's tax return, you can earn up to $4,300 before you are subject to income tax. This is your Standard Deduction.
(2) If not a dependent of your mom, you could have an additional $2,750 of taxable income before being hit with any income tax. This is your Personal Exemption.
(3) The $2,750 exemption for you is worth the same no matter who claims it. However, if your mom was in a taxable income bracket higher than 15%, the tax savings would be greater for her compared to the 15% tax rate on your return.
*********************************
