Wednesday, March 18, 2009

Tax Question

Yesterday I did the taxes with TurboTax again. It works for me. I get it well enough to do it, and I only claim stuff I keep receipts about - and that's what works for me. We'd probably see a little increase if we had them done professionally, but that would most likely be eaten up by the cost of the tax prep. :/

This year I have a new thing - Diana is still claimed as a full-time student on our taxes. She's 18 now, and has income from a couple of jobs (though not a whole lot of money) and she also got scholarships for college. She gets her money disbursed to her to use as needed (tuition, room & board). I don't claim her income, but there is a form from the college with the scholarship total & the tuition total. It's only for the first term.

If I put that "T" form in with our taxes, there's no difference one way or another. Should I leave that to Diana for her own taxes? Or have it be on ours?

Trevor didn't get one this year, although he got one last year.

I was going to have both kids file their own taxes this year even though they are claimed as dependents on ours. Trevor is living at home, after all.

Any suggestions or ideas?

And just so you know - we are getting a refund because Lee opted to have taxes taken out of his unemployment compensation, even tho that's not typical (yay Lee!).



Myrna said...

The way I understand it, and the way we've done it---when the kids earn their own money, they file 1040 EZ/40S (and get refunds for what was withheld btw) it's noted that they are dependents and it all works together. Looking to the troubles in Calif. try not to over withhold---you might not get your money back, and the Govn't never pays interest for the time they've had your money either.

flyingvan said...

Another 'helpful' tip---the child tax credit evaporates the year they turn 17. (not the deduction, the tax credit) Just give them all your money, and the dear leader will graciously gift you with what he thinks you need---probably 'change'