Welcome Guest. Register Now!  



Find a tax professional cpa near you

View Single Post
  #2 (permalink)  
Old 01-21-2007, 12:05 AM
TaxGuru's Avatar
TaxGuru TaxGuru is offline
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 1,864
Blog Entries: 3
Dear Beedab,

In general, I have found that it is more favorable to have your parents claim you as a dependent as their effective tax rate would be greater than your tax rate.

In tax terminology, your marginal tax is less than your parents tax rate. Hence, it is more beneficial to have your parents claim you.
Reply With Quote
 
Follow us on Twitter
» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 
Forum for CPAs
 
Financial Planning