Can u claim yourself as a dependent

Students: Answers to Commonly Asked Questions

This is the first year I am filing an Illinois Individual Income Tax return. Can I file electronically?
If you are a first-time IL-1040 filer you will have the option to file your income tax return by completing and mailing a paper IL-1040 or filing through a tax preparer or third-party electronic software. However, you must have an Illinois identification number or driver’s license number on file with the Illinois Secretary of State to file using these methods.  You may also use a professional tax preparer to file your tax return electronically.

I am a student. I do not think I owe tax, so why should I file an Illinois Individual Income Tax return?

Students are not exempt from tax nor are there special residency provisions for you.

As an Illinois resident, you must file Form IL-1040 if 

• you were required to file a federal income tax return,  
• your Illinois base income is greater than your Illinois exemption allowance, or 
  
• you are expecting a refund.

As a Part-year resident (you lived in Illinois for part of the year), you must file Form IL-1040 and Schedule NR if you were required to file a federal income tax return, or your Illinois base income from Schedule NR is greater than your Illinois exemption allowance on Schedule NR.

As a Nonresident, you must file Form IL-1040 and Schedule NR if your Illinois base income from Schedule NR is greater than your Illinois exemption allowance on Schedule NR.

For more information, see IL-1040 Instructions.

I work out-of-state while I am away at college. Do I have to report that money to Illinois?
Yes. You are still an Illinois resident, even if you go to school in another state.

Also, you may want to check the revenue department in the state where you worked. Each state has different tax laws. You may need to file a tax return with the other state as well.

If you have to file a return with the other state, you may be eligible for a credit in Illinois on Schedule CR.

Do I owe tax on my scholarship or fellowship?

Certain scholarships or fellowships, that is not taxable under federal income tax law, is also not taxed by Illinois.

Why do I owe Illinois tax when I do not owe any federal tax?
Federal and state tax laws and rates are not the same. It is possible to owe Illinois and receive a refund from the IRS.

Does Illinois have a standard deduction for individual tax filers like the federal tax return?
No, but if you can claim yourself on your tax return you will be allowed a $2,375 exemption. If someone else claims you as a dependent, you are not entitled to the $2,375 exemption unless your Illinois base income is $2,375 or less.

Can my parent(s) or guardian(s) claim me as a dependent on their return?
They will need to contact the Internal Revenue Service to determine if they can claim you as a dependent on their tax return.  If they claim you as a dependent on their federal return, they will also claim you as a dependent on their Illinois return.

If my parent(s) or guardian(s) cannot claim me as a dependent on their return, can I claim myself?
Yes. Illinois allows you to claim your own exemption on your state return if you claimed an exemption for yourself on your federal return.

When I completed my Illinois tax return I found I owe the state. What do I do?
If you owe the state and are filing electronically, you may pay the entire amount or make a partial payment instantly online at the end of your session. Or you may print out your tax form and payment coupon at the end of your session and mail your payment with your return by April 18, 2022. But be sure your payment is postmarked by April 18, 2022, to avoid penalties and interest.

I owe taxes to Illinois but I cannot pay the entire bill by April 18, 2022. What can I do?
Pay as much of the bill as you can by April 18, 2022, to reduce the amount of penalty and interest that will be added to the bill.  As soon as you receive a bill, call the number on the bill to see what payment options are available.

For more information, see the IL-1040 Instructions.

During the early days of the COVID-19 pandemic, most Americans received stimulus checks. People who are marked as dependents on taxes didn't receive the stimulus checks. Now that the U.S. government shows no signs of distributing additional stimulus, there’s a key question you need to answer. Should you claim yourself as a dependent on your taxes?

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Here are the pros and cons of claiming yourself as a dependent on your taxes so y can choose what’s right for you this tax season.

There are ways you can claim yourself as a dependent.

Source: Unsplash

Some adults can claim themselves as a dependent on their taxes. They can be a dependent of their parents, guardians, caretakers, or even a partner.

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For U.S. tax purposes, a dependent is someone whose primary care falls under another person. For example, a minor child is a parent’s dependent. An elderly person might be a caretaker’s dependent. A non-working adult might be a partner's dependent as long as neither of them has any dependents of their own.

The IRS says that any dependent must be a qualifying relative, which includes in-laws, foster kids, and even non-married couples. Dependents can still work and file for their own tax return.

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What are the pros of claiming yourself as a dependent on your taxes?

Claiming dependents opens up certain tax credits. These tax credits can reduce your taxes owed and potentially even provide you with a cash refund. This could save you money from a household perspective.

Some tax credits you or your caretaker might be eligible to receive if you file as a dependent include:

• Child tax credit: Up to $3,600 for eligible children

• Additional child tax credit: Up to $1,400 per qualifying child

• Other dependent credit: Up to $500 per person (this credit is nonrefundable; this means it can only be used to reduce taxes owed, not provide a refund)

• Earned income tax credit: up to $6,728 for three or more qualifying children

• Child and dependent care credit: Up to $3,000 per qualifying dependent

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You might also get tax deductions on things like student loan interest and medical and dental expenses.

Source: Getty

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