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Filing Taxes Thread


maath805

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Question: I'm a first year PhD and made less than 12,000. Is it advisable to file independently or as a dependent of my parents? We don't itemize anything, and we are trying to get the most out of the credits for lifetime education. We haven't owed any taxes ever.

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If you're under a certain threshold you can file completely for free using Turbotax federal free edition. I did it my first year of grad school and it was very simple. I guess I would ask your parents if they are planning on claiming you as a dependent first though.

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Note, however, that most states don't allow standard deductions, and turbotax is not free for state tax filings.

I've used Turbotax the last couple of years, and found it pretty painless. Or at least as painless as complicated taxes can get. It's worth it to pay for them to e-file it, and they store all of your information year-to-year as well.

Past a certain earning point/age you can't be claimed as a dependent anymore, so make sure you ask that before you assume.

H&R Block does free 1040-EZ tax prep, and they're a pretty reputable company to use. You probably have a branch somewhere close to you as well.

Note that there's a difference between TA/RA earnings and Fellowship earnings, too- the former are "normally" taxed, while the latter are only taxed on the amount not spent on tuition, fees, books, etc.

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Note, however, that most states don't allow standard deductions, and turbotax is not free for state tax filings.

Actually, that's not entirely true. TurboTax just doesn't advertise it. If you go to the IRS website, you can look at all their e-file partners. It will tell you the criteria for using each. I have ALWAYS qualified for free federal and state filing (and this in two different states, granted using two different software providers). What you see on TV are the advertisements for the free federal that are available to anyone. The other programs have various criteria about state residence, income, age, and other criteria. What ends up happening is that I use the links from the IRS webpage to log into my existing TurboTax account (from filing for the last 3 years) and I'm able to file both my state and federal taxes electronically and for free.

IRS link: http://www.irs.gov/freefile and http://apps.irs.gov/app/freeFile/jsp/index.jsp?ck

Per the TurboTax Tax Freedom website:

If you qualify for a Free Federal filing, you may also qualify for FREE STATE filing in the following states:

AL, AR, AZ, GA, IA, ID, IN, KY, MI, MN, MO, MS, NY, NC, ND, OK, OR, RI, SC, VA, VT, WV.

That's 22 states, which means half the country is covered if you count the states that lack a state income tax (FL, TX, AK, for example).

For H&R Block:

You may also qualify for FREE State filing from H&R Block if you lived or claimed income in the following states: AL, AR, GA, IN, MI, MN, MO, NY, NC, OK, OR, SC, VA.

I chose these two because they're the ones Eigen referred to in his post. That said, there are a bunch of other providers listed on the IRS website so go check them out and see if they offer free state filing for your state.

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I would recommend TurboTax for those who feel comfortable entering their own information (either the free or paid version, depending on if you qualify for the free version).

I would caution students (and people in general for that matter) against using H&R Block, ProTax, Liberty Tax, Jackson Hewitt, and the like. The primary way that they make money is by getting you to take out refund anticipation loans (or something similar) and by adding as many lines/schedules to your return as possible. Furthermore, if you have some post-high-school education, you should be more than qualified to understand taxes yourself ... understand that their tax preparers use essentially the same software you can buy, but charge you a big premium to use them instead of the software.

If you have more complicated tax situations, you can try a your local IRS Volunteer Income Tax Assistance (VITA) program for free tax preparation and e-filing if you make less than $50,000 (some sites have other specific requirements), or pony up the money for a CPA or tax attorney ... which, if your tax situation is complicated, is going to often cost no more (and often less) than places like H&R Block.

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Question: I'm a first year PhD and made less than 12,000. Is it advisable to file independently or as a dependent of my parents? We don't itemize anything, and we are trying to get the most out of the credits for lifetime education. We haven't owed any taxes ever.

If you make over like........3500 you can't be a dependent.

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If you make over like........3500 you can't be a dependent.

Children can be dependents of their parents as long as the children do not provide more than half of their own support (there are also other criteria that need to be met ... notably age).

See: http://www.irs.gov/publications/p501/ar02.html#en_US_2011_publink1000220886

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Children can be dependents of their parents as long as the children do not provide more than half of their own support (there are also other criteria that need to be met ... notably age).

See: http://www.irs.gov/p...blink1000220886

Gah! The I talked to an IRS person on the phone and she told me I had to take my own deduction, and not file as a dependent!

Oh well

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