Student dependency status?

[tdog7]

I was 20 for most of the year and a part time student for one semester. I earned just over $8000 so did file my own return (for the first time, I'm new at this) and received all of my "federal income withheld" back, my dad claimed me as a dependent student because he doesn't know I took a semester off to work.

He got an IRS notice I was claimed twice, what does this mean? My research makes me believe I just fudged and claimed myself as a dependent when I shouldn't have (although I don't know what else I could file as because I didn't earn more than 50% of my living costs) and that's how this happened but I worry that it has to do with possibly not meeting the student requirement for the tax year. I just need clarification on what could have happened & the tax implications of this. Will we have to refund his deduction?

 

[davew128]

Apparently you didn't learn good enough research skills in your one part time semester. Your father was not entitled to claim you as a dependent if you weren't a full time student for at least 5 months.

 

[LdiJ]

I was 20 for most of the year and a part time student for one semester. I earned just over $8000 so did file my own return (for the first time, I'm new at this) and received all of my "federal income withheld" back, my dad claimed me as a dependent student because he doesn't know I took a semester off to work.

He got an IRS notice I was claimed twice, what does this mean? My research makes me believe I just fudged and claimed myself as a dependent when I shouldn't have (although I don't know what else I could file as because I didn't earn more than 50% of my living costs) and that's how this happened but I worry that it has to do with possibly not meeting the student requirement for the tax year. I just need clarification on what could have happened & the tax implications of this. Will we have to refund his deduction?

When someone files a tax return but they are also someone else's dependent, there is a box on the return that they are supposed to check that indicates that they are a dependent of someone else. Checking that box causes their taxes to be calculated slightly differently and could result in owing a relatively small amount of tax.

However, as the other poster indicated, it does appear that your father's return may be the one that is wrong. It really boils down to whether your definition of part time matches the official definition by your school, of part time.

 

[tdog7]

I am aware of the 5 month out of the year rule for student status, however I am also aware of the institution being able to define their own definition of half time student so I know it boils down to what they reported.

My confusion is mostly on the notice saying that I was claimed twice, and said nothing about not being able to claim a dependent based on dependency status. It clearly says that the issue is one dependent was claimed twice, so does this mean it has nothing to do with my student status?

 

[LdiJ]

I am aware of the 5 month out of the year rule for student status, however I am also aware of the institution being able to define their own definition of half time student so I know it boils down to what they reported.

My confusion is mostly on the notice saying that I was claimed twice, and said nothing about not being able to claim a dependent based on dependency status. It clearly says that the issue is one dependent was claimed twice, so does this mean it has nothing to do with my student status?

That letter has nothing to do with your student status. That letter merely informs you that you claimed your own exemption, and someone else claimed your exemption as well by claiming you as a dependent.

However, the letter does go on to say that if you claimed yourself in error then you need to amend your return. Your parents would have received the same letter. Therefore it boils down to one of you needing to amend your return, and the person who will need to do so would be decided by your student status.

 

[davew128]

I am aware of the 5 month out of the year rule for student status, however I am also aware of the institution being able to define their own definition of half time student so I know it boils down to what they reported.

Well since any 1098-T would have come to you, what did they report?

 

[LdiJ]

Well since any 1098-T would have come to you, what did they report?

The info reported on the 1098-T as far as student status is concerned is a check box that indicates that the person was at least a half time student. (or not at least a half time student if the box is not checked). There is also a check box to indicate if they are a grad student but obviously that is not going to apply in this case. Nothing else regarding student status is reported.