If your parents claim you as a dependent on their tax return, you still need to file a return if your earned income was more than $6,300 in 2017 or if you had unearned income of more than $1,050, as of 2017. When someone claims you on her tax return, you can't claim an exemption for yourself, and your standard deduction is often lower. But, you might still be able to itemize your deductions to get the most from your return. As of 2018, the personal exemption and the dependent tax deduction have been eliminated, so if you earned less than the filing status deduction ($12,000 for single filers), you aren't required to file.
Even if your parents are claiming you as a dependent on their tax return, you may still have the opportunity to itemize deductions. If you do decide to itemize your deductions, you will also need to complete Schedule A as part of your tax return.
Itemizing Is an Option
If you had expenses that were more than the standard deduction you're allowed to claim, itemizing your deductions makes sense. Examples of expenses that you can deduct if you itemize include medical expenses above 10 percent of your income, money you donated to charity and local or state income taxes paid. Itemizing is your only option if your parents claim you as a dependent, your filing status is married filing separately and your spouse itemizes his deductions.
Standard Deduction for Dependents Is Limited
The standard deduction for single taxpayers who aren't claimed as a dependent on someone else's return is $6,350 for the 2017 tax year. That amount can be greatly reduced when your parents claim you as a dependent. As of the 2017 tax year, the standard deduction for a child dependent is either $1,050 or the total amount of your income, plus $350, as long as it's less than $6,350. If your income was just $2,000 in 2017, you can only deduct $2,350 if you take the standard deduction.
As of 2018 however, the standard deduction for single tax filers increases to $12,000. Also, personal exemptions and the standard deduction for a child are eliminated, so your parents have less incentive to claim you on their taxes.
Schedule A and Expenses
If you do itemize for taxes, you'll need to complete Schedule A when you file your return. You can only deduct expenses you actually paid. For example, if you had medical expenses that were more than 10 percent of your adjusted gross income but your parents paid them, they – not you –can claim the deduction if they itemize.
Are You Really a Dependent?
When you are deciding whether to take the standard deduction or to itemize, consider whether your parents can legitimately claim you as a dependent. The Internal Revenue Service has several tests that you need to pass for your parents to claim you as a qualifying child. For one thing, your parents need to provide at least 50 percent of your support. You also need to live with them for at least half of the year and be under age 19 if you're not in school or under age 24 if you're in school full time. If you don't pass the tests for a qualifying child, your parents can only claim you as a dependent or qualifying relative if your income is less than $4,050 for 2017.
- IRS: Publication 501
- IRS: Publication 929
- IRS: Schedule A
- IRS: In 2017, Some Tax Benefits Increase Slightly Due to Inflation Adjustments, Others Are Unchanged
- IRS: Topic Number: 551 - Standard Deduction
- USA.gov. "Tax Credits and Deductions." Accessed June 16, 2020.
- IRS. "Module 8: Claiming Child Tax Credit." Accessed June 16, 2020.
- IRS. "Publication 503 Child and Dependent Care Expenses." Accessed June 16, 2020.
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- IRS. "Filing Status 2." Accessed June 16, 2020.
- IRS. "Tax Tutorial Module 4: Dependents." Accessed June 16, 2020.
- IRS. "Publication 501 (2018), Dependents, Standard Deduction, and Filing Information." Accessed June 16, 2020.
- IRS. "Dependents." Page 2. Accessed June 16, 2020.
- IRS. "Qualifying Child of More Than One Person." Accessed June 16, 2020.
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- IRS. "Dependents." Page 3. Accessed June 16, 2020.
- IRS. "Table 2: Qualifying Relative Dependents." Page 1. Accessed June 16, 2020.
- IRS. "Form 2120, Multiple Support Declaration." Accessed June 16, 2020.
- IRS. "Answers to Frequently Asked Questions for Registered Domestic Partners and Individuals in Civil Unions." Accessed June 16, 2020.
- IRS. "Dependents 3." Accessed April 7, 2020.
- IRS. "IRS Provides Tax Inflation Adjustments for Tax Year 2019." Accessed June 16, 2020.
Based in Pennsylvania, Emily Weller has been writing professionally since 2007, when she began writing theater reviews Off-Off Broadway productions. Since then, she has written for TheNest, ModernMom and Rhode Island Home and Design magazine, among others. Weller attended CUNY/Brooklyn college and Temple University.