Can I file as an independent?

Can i file as a independent on my tax return?

• As of Dec 2010, I will be 23 years old. My mother thinks she can add me to her tax return as a dependent because she helped me get financial aid from the government for the 2010 spring semester. Although, I did use her income (2008 tax return) for the grants and loans, they are all in my name. When she files for income tax in Jan 2011, I would have only stayed at her house for only a week and that was because it was spring break. Even though she has move I am on her new lease but I don’t know. I can prove I have not been living with her because I have been working at a job and I have been paying rent in another city. Can she still carry me as a dependent even though she has not helped me with anything except for getting the financial aid? Will I be able to file as an independent?

• Answer:

  There are certain tests that need to be met in order for someone to be a dependent. If they are under age 24 and full-tim student, lived with you for more than half the year (if they are a full-time student, then time spent at school counts as if lived at home), provide more than half their support, child does not file a joint return, and the child does not qualify on someone else's return. From what you have provided - I can see where you mother would still qualify you as a child for dependency purposes. From a tax planning perspective, it is probably more beneficial for your mother to claim you as your income for the year will be less than $10,000 and after the standard deduction, will have minimum tax consequence. Your mother is most likely in a higher tax bracket and in combination with the education credits, will receive a much greater tax benefit. You might want to calculate your tax as if you had claimed yourself versus allowing her to claim you and have her give you the difference.