Tuesday, August 24, 2010

If I live at home with my parents, do I have to count their income when it comes to filing my taxes?

I live at home with my daughter in a double house. My parents, brother, sister, me and my daughter live downstairs. My grandparents and uncle live upstairs. When I file taxes, am I supposed to say I live with my parents and will their income be factored in causing me to get less money back? Or should I just say that it's just me and my daughter?If I live at home with my parents, do I have to count their income when it comes to filing my taxes?
You pay taxes based on the income that *you* earn, not on what your parents earn.





If your parents are providing more than half of your support, they may be claiming you as a dependent. If that's the case, you can't take the personal exemption for yourself, so your total deduction would be slightly less. If they're paying more than half the support for your daughter, they may also be able to claim her as a dependent as well. If that's the case, you won't be able to claim her either. If your parents are supporting you, make sure you check with them before you fill out your own return.





In *no* case would you *ever* include your parents' income on your tax returns. And the only time you'd ever need to mention them at all on your return is if you're claiming them because you're providing more than half their support. That may happen at some point in the future but it doesn't sound like the case now.If I live at home with my parents, do I have to count their income when it comes to filing my taxes?
you should probably verify this on the website www.irs.gov





You will file as single, claiming yourself and your daughter as dependents. Then only report your own income, not that of your parents. Where you reduce your return is that if you lived on your own you could file head of household which would give you more money back.





Depending on your age and the amount of money you made for the year, it may be better for your parents to claim you.
No, you only count your own income. Living with them though would affect whether you are eligible to file as head of household. And if they can claim you as a dependent, then you couldn't claim your daughter.
You should say it is just you and your daughter. You need to talk to your parents and make sure that they are not trying to claim you and your daughter. Any conflict between your fillings will cause the IRS to red flag your taxes. If you both are on the same page you are all good. Do not include your parents income.
You don't have to say where you live, just don't claim any rent. My daughter and I live with my parents, and when I am asked if I own or rent, I say other.





Also, who you live with has very little to do with filing your taxes unless they claim you. Just say it's you and your daughter.
You won't report their income, they'll report their income.

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