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How is support defined in regards to qualifying as a dependent?

I am trying to determine whether or not I legally qualify as a dependent or not for my federal taxes, but I am a bit unclear on exactly how support is defined for one of the 4 testing cases.

I pay for all of my own bills, food, clothing, books, parking related expenses, etc., however as far as FAFSA goes, my parents did file that with me (as required) last year. Do the federal loans I receive through that count as them supporting me? How about a PLUS loan?

Update:

I am aware of how to calculate support, that's not what I'm looking for. All I need to know is whether or not loans acquired through financial aid (FAFSA), on which I had to be listed as a dependent (which is not the same as the IRS's definition), counts toward self-support or parental support.

By the way, I pay all my own insurance costs, have no health care (via my parents or myself), and do not live with them. Sitting down with them to talk is not an option.

3 Answers

Relevance
  • Sit down with your parents and fill out the support worksheet on page 20 of IRS Pub 501 http://www.irs.gov/pub/irs-pdf/p501.pdf . Then you will know if you are providing more than half of your own support or not.

    Tuition that you pay out of your pocket, including loans that YOU take out yourself counts as self-support, as do the food and clothing that you buy yourself. However the fair market rental value of your parents' home, health insurance, auto insurance, utilities and a plethora of other costs count as support that THEY provided and will eat heavily into meeting the support test.

    To no longer be treated as a dependent, you must provide more than half of your OWN support. The amount that your parents provide is actually irrelevant, so if a grandparent is picking up some of the tab it's possible for them to pay much less than half, but if YOU don't provide more than half, you're their dependent for tax purposes.

  • Judy
    Lv 7
    1 decade ago

    The IRS has a worksheet for calculating support. You can find it multiple places on their website. One is in Publication 17, page 35. Loan amounts spent on your support count for you if they're in your name only, for them if in their name, no matter who actually ends up paying back the loan.

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