As a young adult, your income generally determines whether you need to file your own tax return.
If your gross income is below a certain level, you may not be obligated.
However, you can still choose to file a return even if it’s not required.
Here Is A Method That Will Help You Decide When To File On Your Own.
- You may be legally required to file on your own.
- Consider filing to receive certain credits and a refund of any tax withheld.
- You might still need to file as a dependent.
Filing as a dependent means you’ll be ineligible for most tax credits, including education credits like the American Opportunity Tax Credit and the Lifetime Learning Credit. However, depending on your parents’ income, they may benefit from those credits by claiming you on their return.
Your parents might also qualify for other tax benefits, such as the Child Tax Credit or the Credit for Other Dependents.
Visit our office to talk to our Generational wealth specialist for more information.