Taxes/SA Dependents

Discussion in 'Off Topic' started by USCGA_2018, Feb 5, 2015.

  1. USCGA_2018

    USCGA_2018 Member

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    DS is 4/c cadet at USCGA. Can we still claim him as a dependent on our 2104 Tax return? He reported on June 30th, so we supported him for 6 months (which I believe is the threshold).

    I assume that this is the final year that we could claim him. Any thoughts on this? Thanks!
     
  2. Sledge

    Sledge Member

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    It's not a percentage of the year, it's a dollar measurement of support. At USMA, the tax memo for plebes estimates that a plebe provided $44K of his own support from July 2 to December 31. You would have to have provided more than that in the first six months to claim your Mid as a dependent this year - assuming a similar estimate of CGA support.

    Here's a couple of links from the USMA treasurer.

    http://www.usma.edu/parents/SiteAssets/Tax Letter to Parents2014.pdf
    http://www.usma.edu/parents/SiteAssets/TAX MEMO 2014.pdf
     
  3. USCGA_2018

    USCGA_2018 Member

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    Thanks Sledge. I have to dig a bit more. I am looking at an online USCGA Parents Handbook that uses the 6mo guideline and says that parents can claim their DS/DD in year one only at the SA. I can't find a date for the document and am afraid it might be outdated.

    Any USCGA parents out there that have filed taxes yet this year? How did you handle the dependent issue?

    Thanks!
     
  4. MedB

    MedB Parent

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    Hi,

    Parents with kids in all of the SA's wrestle with the same question for year one. I can tell you for AFA the various parent's groups are split about down the middle on the topic.

    You can make the time requirement work especially if you consider thanksgiving and xmas break. It's about the dollars if you are audited....

    Depending on your personal financial situation and how you itemize, many parents feel they can justify the dollar threshold when you consider all of the expenses (including shelter, utilities, insurances, transportation, etc).
     
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  5. Rocko

    Rocko Member

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    Does anyone know if USAFA provides info like what is provided in the USMA links? Some good info and I'd love to have something like this to take to our tax advisor.
     
  6. skt

    skt Member

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    [Does anyone know if USAFA provides info like what is provided in the USMA links? Some good info and I'd love to have something like this to take to our tax advisor.[/QUOTE]

    Yes, USAFA provides similar information. I haven't looked at in in some time, but I think it is in the parent handbook or maybe it's just information provided to the cadets. I believe the amount they say they provide that first year (or approximate half-year) is $21,000.
     
  7. hawk

    hawk ButterBar Dad

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    Yes, USAFA provides similar information. I haven't looked at in in some time, but I think it is in the parent handbook or maybe it's just information provided to the cadets. I believe the amount they say they provide that first year (or approximate half-year) is $21,000.[/QUOTE]

    Sorry to necro-post, but the USMA letter is just not that useful. It may very well be the IRS position, but its overly simplistic.

    At least a couple tax account friends believe it should be challenged. IRS says its not a scholarship relationship. That means the cadets are employees of the Army. If the funny money compensation is counted as income, then the lodging, uniform expense, etc should be deductible since its mandated by the employer.

    So if its not a school/scholarship situation, then its an employer relationship. IRS can't pick the worst of both.

    If it were treated properly the net cadet refund would be far higher. But you'd still not be able to deduct your dependent except for potentially the year they report.

    Bother anyone the cadets are being over taxed?

    That said, it was not worth our effort to challenge.
     

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