Tax issue with the folks.

[Skip88]

What is the name of your state (only U.S. law)? California

I am a 22 year old male living with my parents. I serve as a part time nanny/house cleaner for them, work an average of 24 hours a week at a real job, and contribute about $300 dollars a month to the family household. I am also roughly $10,000 in debt between medical bills and bank overdraft fee's from a few years ago.

The nitty-gritty is my father is planning to file me as a dependent on his taxes for this year but is unwilling/unable to help me pay for my own debts. Maybe it is just opinion, but the situation feels like a one-way door.

Is he in the legal right or should I file independently? The only reason I even care is this could turn into a matter of possibly $1000 or more. Thanks for your time.

jWhat is the name of your state (only U.S. law)?

 

[Proserpina]

What is the name of your state (only U.S. law)? California

I am a 22 year old male living with my parents. I serve as a part time nanny/house cleaner for them, work an average of 24 hours a week at a real job, and contribute about $300 dollars a month to the family household. I am also roughly $10,000 in debt between medical bills and bank overdraft fee's from a few years ago.

The nitty-gritty is my father is planning to file me as a dependent on his taxes for this year but is unwilling/unable to help me pay for my own debts. Maybe it is just opinion, but the situation feels like a one-way door.

Is he in the legal right or should I file independently? The only reason I even care is this could turn into a matter of possibly $1000 or more. Thanks for your time.

jWhat is the name of your state (only U.S. law)?

Why should your father pay your debts?

 

[Skip88]

legality not morality

Why should your father pay your debts?

I am not asking him to. Just want to be able to find out if I have the legal right to file as an independent since I am doing him a service and giving HIM money for his/our family's debts, AND taking care of my own debts and bills. I am not looking for a morality debate.

 

[Proserpina]

I am not asking him to. Just want to be able to find out if I have the legal right to file as an independent since I am doing him a service and giving HIM money for his/our family's debts, AND taking care of my own debts and bills. I am not looking for a morality debate.

YOU raised the issue.

Frankly, if you're living there, you SHOULD be contributing to your parents' expenses. You're doing nobody any favors or "service" - you're doing what you SHOULD be doing as a mature, responsible adult. You know, like paying your bills?

He appears to be providing most of your support - that generally gives him the right to claim you.

 

[cyjeff]

What is the name of your state (only U.S. law)? California

I am a 22 year old male living with my parents. I serve as a part time nanny/house cleaner for them, work an average of 24 hours a week at a real job, and contribute about $300 dollars a month to the family household. I am also roughly $10,000 in debt between medical bills and bank overdraft fee's from a few years ago.

The nitty-gritty is my father is planning to file me as a dependent on his taxes for this year but is unwilling/unable to help me pay for my own debts. Maybe it is just opinion, but the situation feels like a one-way door.

Is he in the legal right or should I file independently? The only reason I even care is this could turn into a matter of possibly $1000 or more. Thanks for your time.

jWhat is the name of your state (only U.S. law)?

Just want to make sure I understand this.

You have a part time job, occasionally look after your sibling(s), occasionally clean the house and contribute $300 a month (roughly).

How did you incur medical bills? Were you not covered under your parent's insurance?

I will say that your father is supporting you in all meaningful ways.

 

[TinkerBelleLuvr]

You mention nothing about being in school. How much do you make in a year? Because if it's more than $3100 per year, your parent's cannot legally claim you on their taxes. The exact amount is the amount of a dependent is for the year - don't have the figures in front of me.

 

[Proserpina]

You mention nothing about being in school. How much do you make in a year? Because if it's more than $3100 per year, your parent's cannot legally claim you on their taxes. The exact amount is the amount of a dependent is for the year - don't have the figures in front of me.

Admittedly, that's a very good point.

Apologies. I got caught up with the whole "sense of entitlement" issue.

 

[mistoffolees]

You mention nothing about being in school. How much do you make in a year? Because if it's more than $3100 per year, your parent's cannot legally claim you on their taxes. The exact amount is the amount of a dependent is for the year - don't have the figures in front of me.

I haven't done a lot of research - Ldij can probably answer it, but my understanding is that:
a. If OP is a full time student and under age 24, there is no income limit.
b. If OP is over 19 and NOT a full time student, then the income limit applies.

 

[Skip88]

I am not a student and will make a minimum of $21k for the 2011 tax year, might even top out at $30k.

 

[TinkerBelleLuvr]

I am not a student and will make a minimum of $21k for the 2011 tax year, might even top out at $30k.

Based on this statement, the parents cannot take the child as a dependent per IRS laws.

 

[mistoffolees]

Based on this statement, the parents cannot take the child as a dependent per IRS laws.

Agreed.

HOWEVER, with that amount of income, OP should be paying his parents more than $300 per month for living expenses.

The fact that he's getting nearly a free ride on living expenses and is still $10 K in debt is a concern, as well. I'd suggest a financial planning course.

 

[stealth2]

Have you considered moving into your own place?

 

[mistoffolees]

Have you considered moving into your own place?

That's one solution - but is probably doomed to failure. He's making $21 K and is already $10 K in debt - even though he's only paying $300 a month for his room and board. He really needs to learn to get his finances under control - whether he stays where he is or moves.

 

[TinkerBelleLuvr]

If he supplements his monetary contribution with child care, he is helping around the house. He may want to look at working additional hours to get rid of the debt.

 

[ecmst12]

Of course, he's 10k in debt now, you don't know how much debt he had to begin with...he implies that he has been paying it off. But making that little, even with low living expenses, it will take a while to pay off.