Eff Taxes-Vent.

chelseamb11

Seriously.  I was only in school one term of last year, January to March.  After that I was on my own, so I'm finally claiming myself on my taxes for the first time.

Well, I got my 1098T (which is my form from my university saying how much you paid an dhow much you received in scholarships).  Because the term I was there was billed in 2010, my parents got credit for "paying" that money for the 2010 taxes.  However the scholarship I received is on 2011 because it wasn't applied till 2011.  AKA my parents got credit for paying for that term, but I'm getting shafted with the taxes on the scholarship I received (which they normally got shafted with, but it evened out with how much they contributed according to my taxes).

Because of this, instead of getting the $1000 refund I was expecting (which is a lot of money for me right now) I have to PAY ovre $1000.  Wtf.  Based on the logic, my dad (and partly my mom.. they divorced in 2011 so their 2010 taxes were messy) owe me the difference for this, as they got the credit.  But my dad has no money to pay me.  He can barely pay his bills.  So I'm basically stuck with a huge IRS bill that I can't afford between paying for the wedding and changing aparmtnets. I'm about to call him on my break at 9:30 but I hihgly doubt he's going to agree that he owes me the difference.

FML.

KrisKenny

That sucks! Sorry to hear.
Can you file for some sort of extension or set something up to make payments to the IRS?

chelseakopperud

I'm sorry

chelseamb11

What pisses me off in all this, I discovered that part of the credit you get for amount paid in comes from student loans. Which I pay.  Which means my parents have been getting credit for my payments for the past 3 years.  My dad would know this (mom doesn't touch the taxes) and he failed to mention it.

L&J2012

My FI (who has an accountanting degree) would say that having to pay the IRS is actually better (it means you get more money throughout the year or something. It confuses me but I take his word for it.), but having to pay $1k is ridiculous. I don't know that it's necessarily your parents' fault, though, and I'd try talking to the IRS about it (though, my FI works for them and people are overworked so I have to say good luck with that), or, do you or your parents have a financial advisor? Or maybe a friend who has one? Maybe they could give you some advice.

chelseakopperud

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-club-boards_june-2012-weddings_eff-taxes-vent?plckFindPostKey=Cat:Wedding Club BoardsForum:3ae4d68d-f10a-4dec-8810-da13c14a7b86Discussion:52c0ef56-6358-4eca-9197-2f5f5faa2c2ePost:903e8fd8-42fe-4ecd-bb31-56a64f00e3e0">Re: Eff Taxes-Vent.</a>:
[QUOTE]<strong>My FI (who has an accountanting degree) would say that having to pay the IRS is actually better (it means you get more money throughout the year or something.</strong> It confuses me but I take his word for it.), but having to pay $1k is ridiculous. I don't know that it's necessarily your parents' fault, though, and I'd try talking to the IRS about it (though, my FI works for them and people are overworked so I have to say good luck with that), or, do you or your parents have a financial advisor? Or maybe a friend who has one? Maybe they could give you some advice.
Posted by L&J2012[/QUOTE]

He is right- if you get money back then it is the same as giving the government a loan for free... that you could have had in the stock market or money market account making money on it. It is best to stay as close to even as possible.

Kfudge0714

that seems a little odd to me...  those forms (that are sent from the school) come in the students name and are needed to file taxes. So if the form came in your name how is it that your parents can claim that on their taxes? Are you still a dependent on their taxes?

I would consult a CPA.

chelseamb11

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-club-boards_june-2012-weddings_eff-taxes-vent?plckFindPostKey=Cat:Wedding%20Club%20BoardsForum:3ae4d68d-f10a-4dec-8810-da13c14a7b86Discussion:52c0ef56-6358-4eca-9197-2f5f5faa2c2ePost:24d33b70-5bc1-4788-90cc-05ff86da4226">Re: Eff Taxes-Vent.</a>:
[QUOTE]that seems a little odd to me...  those forms (that are sent from the school) come in the students name and are needed to file taxes. So if the form came in your name how is it that your parents can claim that on their taxes? Are you still a dependent on their taxes? I would consult a CPA.
Posted by Kfudge0714[/QUOTE]

I was through 2010.  2011 is the first year I'm filing as not being a dependent.  It just kicks me in the ass that the credit that is supposed to come along with the scholarship taxes and even it out is on 2010.  Aka the credit was on 2010 (when my parents could claim me) and the taxes owed on the schlarship are on 2011 (when my parents aren't claiming me).  I thought about having them claim me again, however I'd owe even MORE to the IRS because my income was too high being a dependent of someone.

Sarah0335

From my experience, you kind of get screwed on taxes your final year of school if you are there a partial year.  That happened to me too because of the change from being dependent to claiming myself and how the money fell over the calnedar year. 

A very similar thing happened to me back in 2008, but I think I owed like $3,000.  It was really bad at the time, but was only one year and then things have been fine since. 

midgetthemighty

I'm sorry Chels. I think they offer payment plans though. Pretty sure my parents used that a few years ago when they owed A LOT because my Dad's second job wasn't taking taxes out.

sleblanc72

I think you should be able to do a payment plan Chels.  It does suck, but hopefully they'll be willing to work with you.

Megbo2012

I'm sorry Chels, that sucks! I had a friend whose parents refused to let her file independent, and said they'd give her the money they got for keeping her on, and never did.  I don't know why parents screw their kids over like that

Kfudge0714

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-club-boards_june-2012-weddings_eff-taxes-vent?plckFindPostKey=Cat:Wedding Club BoardsForum:3ae4d68d-f10a-4dec-8810-da13c14a7b86Discussion:52c0ef56-6358-4eca-9197-2f5f5faa2c2ePost:c1f2cdfb-ea91-4d07-9e70-ce2958aa8988">Re: Eff Taxes-Vent.</a>:
[QUOTE]I'm sorry Chels, that sucks! I had a friend whose parents refused to let her file independent, and <strong>said they'd give her the money they got for keeping her on, and never did.  I don't know why parents screw their kids over like that :/
</strong>Posted by Megbo2012[/QUOTE]

people do funny things when it comes to money!

Sarah0335

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-club-boards_june-2012-weddings_eff-taxes-vent?plckFindPostKey=Cat:Wedding Club BoardsForum:3ae4d68d-f10a-4dec-8810-da13c14a7b86Discussion:52c0ef56-6358-4eca-9197-2f5f5faa2c2ePost:f3678309-dce7-4449-ae8f-5503938a8310">Re: Eff Taxes-Vent.</a>:
[QUOTE]In Response to Re: Eff Taxes-Vent. : people do funny things when it comes to money!
Posted by Kfudge0714[/QUOTE]

Totally agreaa with this.  It really sucks that people can be that way too.

laurabub

So your student loans are in your name or your parents?  If it is in their name and you are paying that seems unfair that they are reaping the benefits of the student loan credit.  It just depends on how you want to handle the situation.  Seems like you can go two routes IMO.

Stop paying the student loans if they are in your parent's name.  Tell them they are the ones that are reaping the benefit of the tax credit on the loans so they either need to give you the credit or foot the entire bill of the loans.  Honestly if the loan is in their name you don't have to pay it (but you might have some sort of different agreement with them).  Also this choice seems like it probably wouldn't go over very well. 

Choice two: eat the tax bill and move on.  I highly doubt your parents meant for you to end up in this position.  Maybe you could ask them to chip in?  Split the bill with you?  I would try and get a payment plan like some of the PPs have suggested.

Taxes suck and I'm sorry you are getting stuck with that huge bill.  I would suggest consulting with a CPA as well!!!  PS this is just how I see the situation, but I am sure there are other solutions too!

MMRoberts11

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-club-boards_june-2012-weddings_eff-taxes-vent?plckFindPostKey=Cat:Wedding Club BoardsForum:3ae4d68d-f10a-4dec-8810-da13c14a7b86Discussion:52c0ef56-6358-4eca-9197-2f5f5faa2c2ePost:0c89b15e-f263-4cf6-b119-0b76b4b5354d">Re: Eff Taxes-Vent.</a>:
[QUOTE]From my experience, you kind of get screwed on taxes your final year of school if you are there a partial year.  Posted by Sarah0335[/QUOTE]

Agreed.  I remember when I first filed as an independent. 

Basically, I was paying my college the entire time but because my parents would not let me claim myself as an independent, they got the credit.  It sucked.

melfacto

Sorry to hear this!
However, you should be thankful your parent's paid for some of your schooling, many - including myself did not have any help with schooling costs.

gregamywedding

I am so sorry. That really sucks. I once owed the IRS $4,000. I had no money to pay them at the time. So I sent them a letter with a check of what I had and told them I could pay them $100 a month until it was paid off. They accepted it. They also took whatever money I was suppose to get in my refunds every year until it was paid for. Last year was my first time to actually keep the refund. I was so excited. I didn't get a refund for 3 years.

Zimsgirl26

I'm so sorry! If it makes you feel any better I don't think I'm gonna get better financial aid til 2013 because when my parents file the FAFSA I'll still be a dependent

julianahenao881

sorry to hear that.....hope everything works out for you. You should call them and set up a payment plan

DrPB2b13

Did you use an accountant?  I know it can be costly, but at that cost if you haven't already, I'd look into having someone do your taxes just to make sure.  My FMIL works for H&R Block and does ours for us, and she was absolutely SHOCKED a couple of years ago when I told her that it was the first time I'd ever received a refund - and that was while I had worked in MA and ME (both high income taxes) while living in NH (no income tax) AND claimed as a dependent, so my parents got the benefit of claiming all of my school payments, even though they hadn't contributed a penny and the loans were in my name.  Prior to that, by my calculations with TurboTax, I'd owed $500-600 every year as an undergrad making minimum wage.

Seriously though, the $60-100 it might cost you to have an accountant do it could save you a huge chunk of that money.