Should Parents Claim Their College Children as a Dependent?

Should Parents Claim Their College Children as a Dependent?

At His CPA PC we work hard to keep your tax bill as low as legally possible. The below is a sample letter we might receive from a client seeking wisdom about the taxes for their children who are full-time college students:

Hello John, I hope you are doing well. Our son is in school in New Jersey and is working an internship up there this summer. He got his first paycheck and got hit with the reality of taxes!

I am wondering if there is any way he can minimize his withholding. Can he adjust that so he has less federal tax taken out? I want to be sure we don’t break any rules. We still claim him on our taxes while he is a full time student.

Below is my response:

Withholding is based upon how he completes his withholding forms. For my daughter I encourage her to pay a little more as she goes so that at the end of the year she does not owe any. 

However if you are confident your son will owe none at the end of the year I believe the payroll withholding instruction forms will walk you through how to lower his withholding as a student. 

Be sure when you file your personal returns, if he still qualifies, that if you claim him as a dependent on your return that he does not also claim herself on his. 

Feel free to call if any questions. Have a great week. 

Determining Filing Status and Dependents
The first step in filing your personal Federal tax return is to determine your correct filing status and the number of deductions you can claim. It sounds simple, but it can make a difference in the amount of tax you pay. To read more http://www.hiscpa.com/personal-returns.html  

John Dillard, CPA of His CPA, PC, 1940 Woods River Lane, Duluth, GA 30097 Phone 770-814-9304 www.HisCPA.com A Christian CPA Firm

Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!

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