Cilent's 21 yr dependent paid for school tuition and books from dependent's funds. Worked in 2005 and saved money for education.The TB page 12-3 states that funds paid by dependent can be deducted on the parents tax return be the example was funds paid by a grandparent and the dependent having proceeds from a student loan. If the dependent paid from their bank account would this be the same as student loan. Dependent worked in 2004 and made $28000. This is the first yr client has been able to carry son as dependent because of the income available to him in the past but paying the school tuition and books last yr used all his funds up.Can the tuition & books quailfy to be used on the parents return
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>>paying the school tuition and books last yr used all his funds up<<
I don't understand how the son paying his own expenses with his own money allows the parents to claim him as a dependent. -
Income
His only income was from his bank account for pervious years and that total was 2843.68.That was his only income.Originally posted by jainen View PostComment
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Da
You said the student income was TWENTY EIGHT THOUSANDConfucius say:
He who sits on tack is better off.Comment
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Yes
In 2004 he worked for General Motors when he finished high school. Worked for 6 months and was laid off. Parents have not claimed him since he had the money available for the last two years but now he's started back to college and money is gone. Twenty Eight Thousand in 6 months,now you know why your pay a high price for a auto.Originally posted by RLymanC View PostComment
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Money from a bank account is not income. It is already his money just being stored in a bank account. When he withdraws it, that does not make it income.Originally posted by Donanita View PostComment
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Agree
The money does not come into play as income. Was questioning the fact that he paid all his school expenses with this money but as a dependent would his parents qualify for the education credits.Originally posted by Bonnie View PostComment
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