My parents provide me with money to cover tuition and some living expenses, but do not claim me as a dependant. Do I have to report this as income on my tax return?
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Anonymous
ANSWERS: 3
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Your folks need to consult with a good Certified Public Accountant (CPA). They may be missing some tax deductions. Are your folks providing 50% or more of your living costs? Then they may be able to claim you as a dependent. If they claim you, you can not claim yourself should you need to file with the IRS. Money spent on a good CPA will give everyone a better nights sleep.
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No, money from your parents does not constitute reportable income. As wiszard says, they may be able to claim you as a deduction. If not, you can claim yourself (if you have some other source of income: if you don't, there's no reason to even file a tax return).
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Your parents can give you up to $11,000 per year as a gift and neither of you need to file anything. But as stated by others, if they are supporting you, it would help them to claim you on their tax return. You can still file a tax return, you just mark that you are claimed as a dependent on another's tax return. If you haven't earned much, you'll probably still get most of your taxes paid in back.
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