Financial Aid and Taxes

[ordinarylives]

@BelknapPoint

That may be true depending on individual circumstances, now that personal exemptions have gone away. But, I’m pretty sure there are other credits or deductions that a tax dependent is not eligible for because of the dependent status.

Edited to add: For example, a tax dependent cannot claim the American Opportunity or Lifetime Learning Tax Credits on their own tax return.

As always, you point us in the right direction. D’s new employer provides an employer contribution to an HSA. That’s an issue if she’s a dependent.