Questions about taxes and scholarships

Jayceguy

Jayceguy

Jayceguy
5-Year Member
Joined
Sep 11, 2013
Messages
318
Hello all,
I have been looking for non-tuition scholarships that I can use at West Point, and I can't seem to find any that offer any real amount ($250+) and don't have something along the lines of 4 winners for 20,000 applications. If any of you smart and helpful people know of any, could you PM me?
Second question: My parents aren't exactly wealthy and so anything I can do to save them some money I will try to do. I know they can't claim me as a dependent while I am enrolled at WP, but couldn't they plebe year? They have to provide me with at least 50% support to claim me as a dependent, but being as I am at WP for less than 6 months of 2014, couldn't my parents say they provided over 50% of my support?
Thanks in advance for the info.
 
http://www.usma.edu/parents/SitePages/Home.aspx Scroll down to Tax Memos -- unless parents have provided in excess of $45,000 for the 6 months you are home, they cannot claim you as a dependent.

If you need the $2000 for the deposit, applying for and winning 8 little scholarships for $250 each will do it - also if that doesn't work out, WP will deduct the $2000 from your monthly pay over the course of attendance as a cadet.
 
Thanks another13mom, I have saved up about $5000 from busing tables to cover all initial costs, so I'm not worried about WP costing them, but rather make sure their tax return stays at what it is for an extra year. But I suppose I should be thankful that college won't cost them anything, and I won't be home to raid the pantry everyday, so it will probably come out to be pretty even.
 
Jayceguy said:
Thanks another13mom, I have saved up about $5000 from busing tables to cover all initial costs, so I'm not worried about WP costing them, but rather make sure their tax return stays at what it is for an extra year. But I suppose I should be thankful that college won't cost them anything, and I won't be home to raid the pantry everyday, so it will probably come out to be pretty even.
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It might be wise for your parents to consider changing their payroll deductions now. It might save them a big bill at the end of the year.
 
I'll tell them that. Thanks for the tip.

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Hi, I'm actually in need of some guidance as well. What is 'payroll deductions'? I'm with jayceguy, anything to help defray the costs of anything for my parents is best.
 
Look for local organizations like Elks, women's clubs, community groups, even car dealers. Many local non-profits will give scholarships. Our son's high school career counseling center provides local scholarship applications for students. And he's applying for everything...those $250 checks ad up.


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jackiejyp7 said:
Hi, I'm actually in need of some guidance as well. What is 'payroll deductions'? I'm with jayceguy, anything to help defray the costs of anything for my parents is best.
Click to expand...

Payroll deductions are part of the tax code that affect with holdings from your paycheck. The more deductions you claim, the less money your employer takes out. The less, the more money your employer takes out of your paycheck and sends to the IRS. When you file your taxes in April, you settle the difference. If your employer sent too much money to the IRS, you get a refund. If they didn't take enough, you have to send the IRS a check. Usually this is just a shell game for the richer because they'd rather earn interest on their money by receiving it in their paycheck and pay the IRS at the end of the year(netting a small profit on the interest/investment) than to loan it to the government at 0% (and forgo any investment opportunities) and get a refund. What Kinnem was getting at is if your parents aren't able to claim you as a deduction by the IRS's rules at the end of the year, then they may have to pay the IRS; but in all likelihood, it would just mean a smaller refund. There is no defraying of the costs unless they are planning to use their tax refund next spring to fly up for Plebe Parent Weekend...but in any case it is their money whether the government is holding it or they put it straight in the bank from their check.
 
845something said:
Payroll deductions are part of the tax code that affect with holdings from your paycheck. The more deductions you claim, the less money your employer takes out. The less, the more money your employer takes out of your paycheck and sends to the IRS. When you file your taxes in April, you settle the difference. If your employer sent too much money to the IRS, you get a refund. If they didn't take enough, you have to send the IRS a check. Usually this is just a shell game for the richer because they'd rather earn interest on their money by receiving it in their paycheck and pay the IRS at the end of the year(netting a small profit on the interest/investment) than to loan it to the government at 0% (and forgo any investment opportunities) and get a refund. What Kinnem was getting at is if your parents aren't able to claim you as a deduction by the IRS's rules at the end of the year, then they may have to pay the IRS; but in all likelihood, it would just mean a smaller refund. There is no defraying of the costs unless they are planning to use their tax refund next spring to fly up for Plebe Parent Weekend...but in any case it is their money whether the government is holding it or they put it straight in the bank from their check.
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Absolutely correct. And the main reason I think parents should think about and review this now is so that they don't get an unpleasant surprise April 15 of next year... immediately preceded by or followed by an "Oops!". No change may be needed but better to review it than be surprised.
 
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