If I move out of my parents' household, would I still qualify as a dependent?

Question

I am only 19 years old and while I am engaged, I do not plan to get married until after I graduate. I was wondering if my parents could still claim me as a dependent and if I would still be covered by their insurance and be able to receive the financial aid package that I currently have if I move out of the house to live with my fiancee.

Answer 1

Depends.  If you move out now, you have already lived in their home for more than half of the year and that's one of the qualifiers as a dependent.  Assuming that you're a full time student, the only way that you can not be a dependent in 2008 is if you provide more than half of your OWN support for the ENTIRE year.  So, for 2008, you almost certainly will be a dependent.  For 2009 the situation may change, however.  Assuming that you don't reside in their home for more than half of 2009 you will automatically lose your dependent status for tax purposes.

Being a dependent for tax purposes won't affect your student aid until you are at least 25 or get married.  Your parents income will be included in the aid calculations until that time.  Check with the financial aid office at your school for the latest on the FAFSA rules.  IRS and FAFSA rules are different and one is not dependent upon the other.

The issue on the health insurance is up to the insurance company.  Most of the time children fall off of the policy as soon as they turn 18 or 19 in most cases.  Some insurance companies will allow you to stay on the policy IF you are a full time student AND are claimed as a dependent on your parents' tax return.  However that is entirely up to the insurance company.  Some offer that but not all of them do.  If they do offer it, then you most likely will be covered through 2008 but not in 2009.  Check the policy language carefully to see where you will stand with that; it's not a tax issue at all.

Answer 2

Maybe, if they still support you and you don't have $3500 or more income for the year (that's the 2008 number - it changes a little every year.)

Whether you can be covered by their insurance depends on how the policy is written, what its rules are

Answer 3

Yes, you are.  Being independent means that you're completely supporting yourself financially (this means paying for college, housing, etc. on your own with NO help from your parents).  A large majority of college students are dependent and don't become independent until much later, regardless of whether they live at home or not.

In fact, there are only a few cases where you can be financially independent:

1) If you were born before January 1, 1985

2) If you are a veteran of the U.S. Armed Forces

3) If you will be enrolled in a graduate or professional program (beyond a bachelor's degree) in 2008-2009

4) If you are married

5) If you are an orphan or a ward of the court, or were a ward of the court until age 18

6) If you have legal dependents (other than a spouse)