Who is knowledgeable on taxes?

[Messybrownhair 251]

Hi!

I need expert advice from someone who knows about taxes.

Here is the situation, hubby filed for taxes for the first time this year for the year 2010. He graduated May 2010 and started work June 2010 for the army. He was stationed in Ft. Benning, GA. He went back home to his parents from October 2010 and worked as a security guard/national guardsman for the remaining of the year. He made 19,950 in total and he filed taxes last February and earned enough to sponsor me and we filed AOS successfully.

Now here's the thing. We got a letter from the IRS saying that we need to make sure he is not someone's dependent. He filed an exemption for himself in his taxes and I guess his parents also claimed him in taxes. Now I know someone must ammend their taxes, the question is who. Is it him or his parents??

The IRS website says the that the tests to be a qualifying child are:

1. Child must be your son- Yes

2. Child must be under 24 at the end of the year, and a full-time student (He was 22 then, and he was a student from Jan-May)

3. Child must have lived with you for more than half of the year- (He was in school Jan-May and then on military orders June-Sept, I am not sure if those count as being out of the home)

4. Child must not have provided more than half of his or her own support for the year.. (Not sure what this means, I mentioned how much he earned on salary here)

5. Child is not filing a joint return for the year (Not sure what this means too

So I know we need to fix this soon, but we need a step in the right direction. Thanks to anyone who can help!!

[milimelo 4,479]

Go to a CPA, don't go to HR block.

[bigdog 376]

See a CPA, get it done right.

[NigeriaorBust 4,087]

I think the parents are going to have to ammend their. Did he file jointly with you ( your hubby ) With him making over 19k the parents would have had to contribute more than that to his care and upkeep. Time a child is in school even if they aren't living at home CAN be treated as they were at home. Look at how your hubby filed ( single or joint ) and the parents contributions.

[rogerj 0]

He does not qualify as a full time student for attending only Jan - May. Disregard the other verbage, he was not a full time student long enough. His parents must amend their return.

[Messybrownhair 251]

I think the parents are going to have to ammend their. Did he file jointly with you ( your hubby ) With him making over 19k the parents would have had to contribute more than that to his care and upkeep. Time a child is in school even if they aren't living at home CAN be treated as they were at home. Look at how your hubby filed ( single or joint ) and the parents contributions.

Do you mean did he file jointly with me? He filed as a single person.. He did not pay rent when he lived with them from October to December but he was paying for his own loans and personal bills (but not rent and utilities).

We will most definitely contact an expert but I just wanted some feedback from those who have an idea so we know what to expect..

[Anh map 2,098]

The parents need to amend their tax return.

[웃 910]

Your husband has a very simple return. Did he use http://turbotax.com

I can't recommend it enough. They know all the loopholes and credits that exist. It takes 5 minutes to fill out.

I was expecting a return of maybe a few hundred bucks and I ended up getting around $1400

[Usui Takumi 1,562]

Agreed, parents need to amend.

[Messybrownhair 251]

Thanks everyone!

[rin and john 71]

Either your husband or his parents need to amend; up to them to decide. Those who say your husband was not a full time student are wrong. The IRS definition for a full time student is:

"Full-time student. You are a full-time student if, during some part of each of 5 calendar months (not necessarily consecutive) during the calendar year, you are either:

• A full-time student at a school that has a regular teaching staff, course of study, and regularly enrolled body of students in attendance, or
• A student taking a full-time, on-farm training course given by either a school that has a regular teaching staff, course of study, and regularly enrolled body of students in attendance, or a state, county, or local government.

You are a full-time student if you are enrolled for the number of hours or courses the school considers to be full-time. "

So if he attended full time from Jan to May, he qualified as a full time student for 2010.

So for your OP, 1 and 2 are true; 3 is true as time spent at school (even if living away from home) counts toward the living at home - include with Oct to Dec he spent eight months with his parents;

4 is potentially true and highly subjective as support can include a myriad of items - room, board, etc. If his parents paid for his schooling, room and board, etc then they can claim him and the IRS would never question who provided more of his support. Item 5 is simply that if your parents claim you as a dependent and take your exemption, then you cannot file "married filing jointly" since this requires you to use your personal exemption. Since you were not married in 2010, this was never an option.

Assuming his relationship is good with his parents, modify whichever return yields the least amount being paid back to the IRS. I have two daughters that are now 22 and 24 years old. Each of the past six years (since the first finished HS), I have calculated my tax returns and theirs both ways (me claiming them or they claim themselves). Since I am in a much higher tax bracket, if I claim them my return is typically $1,000 to $2,000 better; however, by not claiming themselves theirs is usually $300 to $400 worse. I claim them, then give them the difference. Essentially, calculate the returns both ways to determine how to jointly pay the least amount of tax to the government and afterwards decided how it is divided amongst the child and parents.

Edited November 7, 2011 by rin and john

[Messybrownhair 251]

Either your husband or his parents need to amend; up to them to decide. Those who say your husband was not a full time student are wrong. The IRS definition for a full time student is:

"Full-time student. You are a full-time student if, during some part of each of 5 calendar months (not necessarily consecutive) during the calendar year, you are either:

• A full-time student at a school that has a regular teaching staff, course of study, and regularly enrolled body of students in attendance, or
• A student taking a full-time, on-farm training course given by either a school that has a regular teaching staff, course of study, and regularly enrolled body of students in attendance, or a state, county, or local government.

You are a full-time student if you are enrolled for the number of hours or courses the school considers to be full-time. "

So if he attended full time from Jan to May, he qualified as a full time student for 2010.

So for your OP, 1 and 2 are true; 3 is true as time spent at school (even if living away from home) counts toward the living at home - include with Oct to Dec he spent eight months with his parents;

4 is potentially true and highly subjective as support can include a myriad of items - room, board, etc. If his parents paid for his schooling, room and board, etc then they can claim him and the IRS would never question who provided more of his support. Item 5 is simply that if your parents claim you as a dependent and take your exemption, then you cannot file "married filing jointly" since this requires you to use your personal exemption. Since you were not married in 2010, this was never an option.

Assuming his relationship is good with his parents, modify whichever return yields the least amount being paid back to the IRS. I have two daughters that are now 22 and 24 years old. Each of the past six years (since the first finished HS), I have calculated my tax returns and theirs both ways (me claiming them or they claim themselves). Since I am in a much higher tax bracket, if I claim them my return is typically $1,000 to $2,000 better; however, by not claiming themselves theirs is usually $300 to $400 worse. I claim them, then give them the difference. Essentially, calculate the returns both ways to determine how to jointly pay the least amount of tax to the government and afterwards decided how it is divided amongst the child and parents.

Thank you! Does it matter that he was on a scholarship from the military so his parents did not pay for his tuition?

[kytwell 179]

Your husband has a very simple return. Did he use http://turbotax.com

I can't recommend it enough. They know all the loopholes and credits that exist. It takes 5 minutes to fill out.

I was expecting a return of maybe a few hundred bucks and I ended up getting around $1400

Is very easy to use and can even import your W-2's and info from banks as well.

This all could have been very easily avoided with some communication among people living in the same house. Best of luck, the IRS doesn't play around.

[Messybrownhair 251]

Is very easy to use and can even import your W-2's and info from banks as well.

This all could have been very easily avoided with some communication among people living in the same house. Best of luck, the IRS doesn't play around.

I agree... I wish his parents had told us.. It was his first time to do this! Makes me so upset, especially if we have to chose who amends then it will have to be us because we won't have a choice I kind of wish the answer was more clear cut

[rin and john 71]

Thank you! Does it matter that he was on a scholarship from the military so his parents did not pay for his tuition?

Not really. Support is largely subjective. It would be hard for the IRS to prove one way or the other where the majority of his support came from (also, scholarship money would be a third party, and not count as him supporting himself). It would not change one way or the other as to where his exemption was used.