Parents Claiming on Taxes

Discussion in 'Naval Academy - USNA' started by RascalFlatts5858, Mar 4, 2010.

  1. RascalFlatts5858

    RascalFlatts5858 Candidate

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    I was just wondering the approximate amount of pay I would recieve from the Naval Academy in a year. My mom went to her accountant yesterday (yay tax season) and he said that if I make less than $3600 dollars next year she can still claim me on her taxes. Just wondering if anyone knew if this was possible, Thanks!
     
  2. usna1985

    usna1985 USNA Alumnus

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    Your income will be higher than that -- I'm not sure how much but a lot more than $300/month. Of course, you won't see much of it . . . :shake:
     
  3. RascalFlatts5858

    RascalFlatts5858 Candidate

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    So basically even though I don't get most of it, our income is still considered the $900 dollars or so a month, which obviously would put me over the $3600 limit?
     
  4. pilotmom15

    pilotmom15 Member

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    you should be able to claim a child as a dependent no matter how much they are making. I have never heard that rule. However, once they are over a certain age you can still claim them but you don't get the child tax credit.
     
  5. Kero

    Kero Member

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    Shouldn't really be calimed as a dependent while at the academy unless you're parents give you lots of money each month. However, USNA does provide free tax service for mids, but I recomend learning to do your own before leaving for college as it is an important skill that you will need for years to come.
     
  6. singaporemom

    singaporemom Member

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    From the IRS tax code:

    http://www.irs.gov/publications/p970/ch01.html#en_US_publink1000178024

    Payment to Service Academy Cadets
    An appointment to a United States military academy is not a scholarship or fellowship. Payment you receive as a cadet or midshipman at an armed services academy is pay for personal services and will be reported to you in box 1 of Form W-2. Include this pay in your income in the year you receive it unless one of the exceptions, discussed earlier under Payment for services , applies.

    Payment for services. Generally, you must include in income the part of any scholarship, fellowship, or tuition reduction that represents payment for past, present, or future teaching, research, or other services. This applies even if all candidates for a degree must perform the services to receive the degree. (See the next page for exceptions.)

    Exceptions. You do not have to include in income the part of any scholarship or fellowship that represents payment for teaching, research, or other services if you receive the amount under:
    The National Health Service Corps Scholarship Program, or

    The Armed Forces Health Professions Scholarship and Financial Assistance Program,

    and you:
    Are a candidate for a degree at an eligible educational institution, and

    Use that part of the scholarship or fellowship to pay qualified education expenses.
     
  7. kp2001

    kp2001 USMMA Alumnus

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    This is incorrect. Do a search around this forum and a few others for tax threads and you will find tons of information.

    In order to be claimed a parent must provide something like more than 50% support. The general consensus is that you could claim your child for the first year they enter the Academy since you provide 100% support from January through June/July. For the next three years and beyond you are not allowed to claim them as dependents because you are not meeting that threshold anymore. The Academy/military is the one providing nearly 100% support through pay and benefits.
     
  8. Stage4survivor

    Stage4survivor Member

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    I am 99.9% certain this is correct, the 50% cutoff has always been the prevailing factor regardless of the individuals income or age. It doesn't even have to be a minor but, does have to be a legal dependent.
     
  9. USNA84

    USNA84 Member

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    Taxes

    I have two mids at USNA.

    Once they go over 17, you lose the child tax credit, and if they file their returns and claim themselves as an exemption and use their SSN, you cannot claim them on your return.

    I learned that filing electronically when I put son#1 on my return. Since he had already filed, my return was rejected until I took him off my return as a dependent.

    I keep telling myself that the silver lining is that I am not paying tuition...
     
  10. Luigi59

    Luigi59 Banned

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    Cadet / Midshipman pay is regulated by Federal law.

    US CODE TITLE 37 > CHAPTER 3 > § 203 - Rates

    (a)
    (b)
    (c) A cadet at the United States Military Academy, the United States Air Force Academy, or the Coast Guard Academy, or a midshipman at the United States Naval Academy, is entitled to monthly cadet pay, or midshipman pay, at the monthly rate equal to 35 percent of the basic pay of a commissioned officer in the pay grade O–1 with less than two years of service.


    According to DFAS 2010, basic pay grade O–1 with less than two years of service = $2,745.60 per month.

    Thirty-five percent of that amount is $960.96 per month, or $11,561.52 per year.

    :cool:
     
  11. 1964BGO

    1964BGO Member

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    You will be receiving about $900 a month gross.
     

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