3. Claiming an exemption for yourself
We all know that exemptions minimize our taxable income, and we also know that we can easily claim one for ourselves and one for each of our dependents. But, what some may be missing, and by some we refer to first-timers, is the fact that they might still be dependents themselves on their parents’ returns.
A certified public account, Neil Johnson, says that most college students claim an exemption for themselves, forgetting about their parents’ returns. If you’re a college student parent, you’ve probably dealt with this mistake.
When this occurs, the parent can lose a dependent exemption, and that’s not all. They may also lose the education tax credits needed for their dependent college student. If you have a college student, call him/her to review your returns.
