ILLMAS Posted March 2, 2017 Report Share Posted March 2, 2017 I would say about 99% of my clients that have kids in college claim their kids as dependents, about 12 years ago one of my client kid went ahead and did their own tax return and the parent could not claim them. A few months later the parent came back with the kids' tax return and the school financial aid department wanted for the return to be amended and included on the parents return. My question is more towards FASFA, if TP kid does there return apart from the parent, would it have an impact on FASFA? I have a TP that has a dependent that would benefit more by filing independently from the parent, because they can take advantage of the student interest and education credits vs the parent claiming them (phaseout because of income). Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted March 2, 2017 Author Report Share Posted March 2, 2017 Student is under the age of 24 Quote Link to comment Share on other sites More sharing options...
Ringers Posted March 2, 2017 Report Share Posted March 2, 2017 I think that if the student COULD be claimed by the parent as a dependent, the student is precluded from taking the education credits and student interest whether the parent actually claims him or not. The same as for the dependency exemption on the 1040. Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 2, 2017 Report Share Posted March 2, 2017 Good question Illmas. This is what I think happens. When the student files his own return and he is under 24, then FASFA asks for the parents' return and they put the two returns together. So if the child made 10K and the parents $70K, they have $80 in income. When the child is correctly claimed by their parents, FASFA only asks for the big return... so in the case above, you have $70K income. Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted March 3, 2017 Report Share Posted March 3, 2017 When filing the FAFSA, if the child is under 24, he MUST include his parent's income and information as part of the FAFSA. He is NOT eligible to claim himself or any education credits unless he can prove that HE HIMSELF provides at least 51% of his own livelihood. (not likely) Students, parents and untrained financial aid people at the college try this dodge all the time. Amend the child's return. Amend the parent's return to claim him as a dependent and claim any education credits they are eligible for. I deal with this at least 25 times a year. The financial aid department of most colleges are inept, untrained, and unmotivated to learn about what they are supposed to do. Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted March 3, 2017 Report Share Posted March 3, 2017 What Jack said, except...if the child is married. Then the FASFA calculates them as and independent student. I have wanted for years to set up a website that puts Freshmen together at universities, gets them married, and then qualifies them for all the education scholarships. After Graduation, they get divorced and move on. What a great scam to the education system. And only for a small fee. Tom Newark, CA 2 Quote Link to comment Share on other sites More sharing options...
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