<p>momof2…definition of a full time student states that the student must be a full time student for 5 months of the year (part of a month counts) and they do not have to be consecutive. So if he graduates in June 2006 and goes to school in Sept 2007 he can be considered a full time student both years. Therefor the gap year doesn’t exist. At least thats the way it reads. Page 11
<a href=“http://www.irs.gov/pub/irs-pdf/p501.pdf[/url]”>www.irs.gov/pub/irs-pdf/p501.pdf</a></p>
<p>Be careful with the gap year as far as health insurance is concerned - if the student is truly taking a non-academic gap year - maybe to work or travel -they may be dropped from the health insurance after 90 days from hs graduation. Every insurance company is different.</p>
<p>I bring this up as our health insurance provider requires proof of enrollement being a full-time student every august - we have to submit a copy of the registration as proof - or insurance is dropped.</p>
<p>There is a big difference being considered dependant vs independant for IRS and college purposes - don’t get the 2 mixed up.</p>
<p>The qualifiers appear more confusing but actually aren’t - even tho your kiddo lives in a dorm 9 months of the year - their place of permenant residence is still at their home address - unless…see below - and most high school students leaving for college fall into this catagory</p>
<p>A student who supports him/herself 100% can be considered independant - because the parents are not providing the support - and being independant means they are making $$ - paying their own room and board and utilities -paying their own insurance - paying their own tuition … etc…</p>
<p>There is an income level of the student that will require the student to file taxes independant of the parents and at which point parents loose the ability to claim them - tho I can’t recall that amount right now.</p>
<p>But again please remember there are different qualifiers regarding dependant and independant regarding the IRS and college requirements.</p>
<p>Sax, thanks for the info. on the gap year. Here’s my second, related question:</p>
<p>If kid graduates in December 07, does volunteer work for nine months, and starts law school in September 08, does that result in dependency for IRS? In otherwords, does the definition of full-time student mean only undergraduate, or would a 21-year-old grad student being supported by mom/dad/grandparents for 50% or more count?</p>
<p>well, referring back to link in post 21 it sure seems like he can still be claimed as a dependent for tax purposes as long as he is under 24. Interesting that some people are saying it’s more beneficial for them and the student if they are not. I’d run the numbers. And believe me, I’m just as confused about it so I might be wrong.</p>
<p>mkm: It’s possible both of our accountants are correct. Perhaps the rules have changed. Or it could be a matter of interpretation. </p>
<p>In any event, forewarned is forearmed. At the apporpriate time, dd will be “independent.”</p>
<p>RE health insurance: as an MD who treats the occaisional college student, insurance companies (at least the ones I deal with) are very strict re the student issue. claims are often held up as the insurance company requests verification from the patients school as to their “full time” status. Make sure you have some proof around in case your kid incurrs expenses.</p>
<p>Fortunately, I don’t see why they can’t be a dependent for insurance purposes but independent for tax purposes. I’ve never seen an insurance company ask to see an income tax statement. Just a report card or college bill.</p>
<p>For some reason, our health insurer says our policy requires that kids over 18 MUST be full-time students & dependents to be covered by insurance but the policy doesn’t state that ANYWHERE on it. Nonetheless, it’s best to get everything well clarified (preferably in writing) in case the kiddo incurs substantial medical bills.<br>
My S’s U allows students to purchase med insurance from them that provides coverage for spring & summer and a separate policy for fall, as long as the student is taking at least 6 credits. It’s an option to consider, as I’m sure other schools much offer similar policies.</p>
<p>Just want to add my 2Cs…
First is to confirm that the student is dependent thru 24y.o if they are undergrad/ grad through that those years. In fact in some states, even child support is extended through 24, while student is in grad school. </p>
<p>2) medical insurance, there is an “age-out” clause to every family, or individual and dependent plan, It is important that parents advise their HR office that the dependent is now in college, often there is a form that you can download from your insurance site or get through HR to fill in the necessary info…name of college etc. (this is applicable for full-time enrollees)The Insurance company confirms this with the college and extends the coverage…it is flagged for the college term 2yr or 4 year but it is updated annually.
Some company will automatically drop a dependent, because they expect your HR benefit managers to take care of the paperwork. However,
if the process has not been formally completed and your child incurs medical costs, the company will fix it as long as you have not lapsed in the coverage etc.</p>
<p>I like the school coverage… (Bought it for DD) but have maintained our regular coverage, which is a much richer plan. We also kept her regular pediatrician who will continue to see her through age 21.</p>
<p>I would suggest doing some comparisons before dropping the D/S for the college option</p>
<p>Our policy doesn’t allow dependent kids to stay on the policy once they reach age 22 unless they’ve been found disabled, so we may well have to consider the U’s policy (coverage is way better than NO coverage). We had insurer send a letter to the U confirming coverage & issuing him an insurance card in his name he could take to college. Our federal plan is outstanding & want to keep all of us covered under it as long as possible.</p>
<p>Hi M-- I should clarify my first point, which is that for tax purposes the dependent can be claimed thru 24y if fulltime in school.</p>
<p>The insurance covers the college student through to 22y.o
But… yes I can hear you on the Federal coverage… they are a power buyer
and usually get the broadest packages for their employees.</p>
<p>I am currently job searching and I am amazed at the great benefits… I plan to apply to a few of their positions…</p>