<p>My oldest DS resigned from one of the Service Academies late April 07’. He worked full time upon his return home until summer classes started at a State University. I know that his Wages, tips and other compensation are taxable income. His W-2 from the Academy (box 1.) is just shy of $5000 and his (box 2.) is about $100. We will still claim him as a dependent since we provided for than half of his 2007 support. </p>
<p>My question is: can DS claim deductions for a portion of the $5000 from the Service Academy as scholarship earnings or required uniforms, etc.? </p>
<p>My initial calculations on the 1040 EZ form indicate that he will owe more than $600. If he can claim deductions I know he would have to file the regular 1040. </p>
<p>His total 2007 wages and other comp. are $11,115 yet his total Federal tax withheld is only $618.</p>
<p>If I understand your question correctly, he could theoretically claim the required uniforms as an employee business expense, except that it would be reduced by 2% of his AGI, and then that would be less than his standard deduction. I’m not sure what you mean by deducting his scholarship. In other words: he would have to itemize and I don’t think he’d have enough to do that. He is better off with the standard deduction.</p>
<p>On the other hand, my quick math tells me that if he has wages of $11,115 and subtracts the standard deduction from that (5,350) he has a taxable income of $5,765 which at his tax rate which should be 10% his tax liability would be $577. Give or tax since it’s from tax tables, not a flat percentage. If his tax withholding is $618 he should be getting a small refund. Am I missing something?</p>
<p>A standard deduction can be claimed against wages by the kid and yet an exemption can still be claimed for kids by the parents if you meet the exemption/dependancy rules.</p>
<p>Great to know, taxguy. Sounds like kid should file 1040EZ taking the standard deduction and parents should file claiming kid as an exemption. Everybody wins, especially the government.</p>
<p>A GREAT BIG THANKS TO TAXGUY!!! I recalculated my DS’s tax return on the 1040EZ and determined that he will receive a $40 return. </p>
<p>Thank you for confirming that he can take the standard deduction as an individual and that we can use him as a deduction on our tax return.<br>
I knew there was some obvious</p>
<p>Just a quick note: Even if your non dependent, such as an unemployed older student, or a relative on retirement, is not required to file a return: 2007 is the year to file a no tax due return because the Economic Stimulus Refund is contingent on filing a return for 2007.</p>