Getting Married for Tax Breaks
 

Hey All,

My girlfriend and I are 19 year old college students, and we're both currently claimed as dependents by our parents. The only way to be claimed as inependents for us is to get married. And yes, we'd be doing this solely for the financing benefits - but we also sort of like each other. I'm wondering if anyone knows how much this will help our college financing? And also, how much will it hurt our parents taxes?

Thanks!

Re: Getting Married for Tax Breaks
 

Wouldn't losing health insurance hurt you two?

Also, what do you mean by college financing? Just being a student lets you get great loans.

Re: Getting Married for Tax Breaks
 

Our federal loans aren't enough to cover our tuition (we need an extra $3k or so each). I use a secondary loan, and my girlfriend's mom pays for her overage. However, we were told by a reputable source that we could get more FAFSA (federal loans) moneys and maybe even grants...

Re: Getting Married for Tax Breaks
 

Don't do it. Wait until you're at least 25.

And you can claim yourself independent on taxes as long as no one else claims you, so tell your parents to stop.

Re: Getting Married for Tax Breaks
 

It will probably hurt you two + your parents for more than 6k. Don't private banks still offer solid loans to students, especially with parents cosigning?

Not sure about the FAFSA part, try talking to your school's counselors. The only way I can see marriage as being a benefit is if they allow you all those huge grants for being extremely poor.

Re: Getting Married for Tax Breaks
 

at a lot of schools if you're an independent it will appear to the school that you will need an enormous amount of aid to be able to attend, so they will give you more money. However, they will also probably require that you take out the maximum of each federal loan

I'd do more research (not sure where/how) before you do anything like this.

Re: Getting Married for Tax Breaks
 

Since we live in the same residence and I make sufficient money, I claim my gf as a dependent on tax returns. This exempts me from dependent status, so I get financial aid plus interest free student loans through this year, but made too much to qualify for aid next year (obv hidden brag) [img]/images/graemlins/frown.gif[/img]

This might be an easier solution than marriage.

Re: Getting Married for Tax Breaks
 

[ QUOTE ]
Since we live in the same residence and I make sufficient money, I claim my gf as a dependent on tax returns. This exempts me from dependent status, so I get financial aid plus interest free student loans through this year, but made too much to qualify for aid next year (obv hidden brag) [img]/images/graemlins/frown.gif[/img]

This might be an easier solution than marriage.

[/ QUOTE ]

You might not want to make that information public since legally you cannot claim her as a dependent. That is unles your GF is also related to you. Are you from Arkansas? [img]/images/graemlins/smile.gif[/img]


Jimbo

Re: Getting Married for Tax Breaks
 

i am a college student, i am not married, my parents do not claim me, i do.

edit: but getting married seems like a good idea.

Re: Getting Married for Tax Breaks
 

Thanks for your help. I'm not looking to start living off of food stamps or anything, although our independent part-time incomes would certainly allow it. My parents make plenty of money, but I'd like to ease the $3k/year burden on them without over-extending myself with student loans.

After this I have grad school to deal with...

Re: Getting Married for Tax Breaks
 

Divorce will cost you a lot more than you save now.

Re: Getting Married for Tax Breaks
 

Just because: A friend once told me he never realized how wrong he was until he got married.

Re: Getting Married for Tax Breaks
 

[ QUOTE ]
Hey All,

My girlfriend and I are 19 year old college students, and we're both currently claimed as dependents by our parents. The only way to be claimed as inependents for us is to get married. And yes, we'd be doing this solely for the financing benefits

[/ QUOTE ]

I know you didn't ask, but please don't do this. This is like, a horrible reason.

Re: Getting Married for Tax Breaks
 

[ QUOTE ]
That is unles your GF is also related to you. Are you from Arkansas? [img]/images/graemlins/smile.gif[/img]


Jimbo

[/ QUOTE ]

Both, obv. I take your word for it, but that's very strange as I read through dependent claiming rules that I thought indicated 'providing >50% support for live-with partner = eligible'. There definitely were stipulations and new standards regarding claiming relatives, too.. I got a 2nd opinion from someone older who read the rules (not a tax advisor) and they concurred. Even more odd that when I provided proof to my school and told them it was my gf they were cool with it and listed me independent.

Oh well, I will have to revise last year's. Luckily don't have to worry about this year's return.

Re: Getting Married for Tax Breaks
 

so you are going to get married to save like 3k

lol?

recycle cans or something, if you are serious about the main reason for you getting married is to get a better deal on student loans, please reconsider

Re: Getting Married for Tax Breaks
 

[ QUOTE ]
Hey All,

My girlfriend and I are 19 year old college students, and we're both currently claimed as dependents by our parents. The only way to be claimed as inependents for us is to get married.

[/ QUOTE ]

This is wrong, you are an adult now.

Re: Getting Married for Tax Breaks
 

[ QUOTE ]
Hey All,

My girlfriend and I are 19 year old college students, and we're both currently claimed as dependents by our parents. The only way to be claimed as inependents for us is to get married. And yes, we'd be doing this solely for the financing benefits - but we also sort of like each other. I'm wondering if anyone knows how much this will help our college financing? And also, how much will it hurt our parents taxes?

Thanks!

[/ QUOTE ]

I'm not sure what the financial benefits would really be. But I just want to make sure that I understand your plan. So you want to marry a person that you probably wouldn't other wise marry for some vague financial benefit? You ever seen 'who wants to marry a millionaire'? That'd be you.

What about later on after divorce? You'll be 22 and divorced which prob doesn't look too good to other potential spouses. And what'll you tell a potential spouse? That you got married at 19 in order to save a get a little more financial aid (which you'll still be paying off)? That sounds crazy.

I can't think of any good reason to get married besides an honest desire to spend your life with someone. Call me old fashioned.

Re: Getting Married for Tax Breaks
 

[ QUOTE ]
[ QUOTE ]
That is unles your GF is also related to you. Are you from Arkansas? [img]/images/graemlins/smile.gif[/img]


Jimbo

[/ QUOTE ]

Both, obv. I take your word for it, but that's very strange as I read through dependent claiming rules that I thought indicated 'providing >50% support for live-with partner = eligible'. There definitely were stipulations and new standards regarding claiming relatives, too.. I got a 2nd opinion from someone older who read the rules (not a tax advisor) and they concurred. Even more odd that when I provided proof to my school and told them it was my gf they were cool with it and listed me independent.

Oh well, I will have to revise last year's. Luckily don't have to worry about this year's return.

[/ QUOTE ]

It is not impossible to use your GF as a dependent depending on where you live but be careful. In some States the common law marriage will occur, then your tax claims will be fine but technically you might be legally married. Just not sure it is worth taking the chance. On the other hand if your GF was a male "life partner" even without any legally recognizable marriage it is quite easy to claim them as a dependent, screwy huh?

Jimbo

Re: Getting Married for Tax Breaks
 

http://www.finaid.org/otheraid/parentsrefuse.phtml

Scroll to bottom.

Re: Getting Married for Tax Breaks
 

[ QUOTE ]
[ QUOTE ]
Hey All,

My girlfriend and I are 19 year old college students, and we're both currently claimed as dependents by our parents. The only way to be claimed as inependents for us is to get married.

[/ QUOTE ]

This is wrong, you are an adult now.

[/ QUOTE ]

in Canada at least as long as you are a full time student getting a post secondary education you are a depednat of your parents up to 25 I think. In fact some kid sued his parents for support money when he was a 19 yo student in BC and won.

Re: Getting Married for Tax Breaks
 

Marriage creates a whole bunch of legal obligations that will end up costing you a lot more. I think this plan is not well thought out.

Re: Getting Married for Tax Breaks
 

In the USA barring any mental illness you are emancipated at age 18. Now the dependent part of the OP's post is just his parents ability to use him as a tax deduction on their taxes until he turns age 24, has income exceeding their support or leaves school, whichever occurs within a given tax year.

Without knowing the OP's specific circumstances it is pretty likely that he will discover being "cutoff" from Mommy and Daddy will not be as pleasant long term as he believes. Neither will be married for that matter. [img]/images/graemlins/smile.gif[/img]


Jimbo