How to declare 20-year-old independent

[Anonymous]

OP here. He was born in and lived in MD his entire life. Graduated from MD public schools. We currently live in MD and have lived here and worked here (and he works here) for his entire life.

He is our last child and we are thinking of moving out-of-state. I am not trying to scam anyone. I’m looking for answers as to what is legal.

[Anonymous]

Anonymous wrote:It sounds like OP's son moved to MD from out of state for college and has been paying OOS tuition, and now that he's an upperclassman OP hopes he can pay in state tuition. That's not how it works, OP.

No, we are long term MD residents (his entire life). We parents are thinking of moving OOS. He is an in-state resident right now.

[Anonymous]

Anonymous wrote:

Anonymous wrote:To what end?

OP is talking about gaming Fadsa to get more financial aid.

It’s funny that you think you can do this. It won’t work, his financial aid will still be based on your income, all that will happen is that you won’t get the dependent tax benefit.

(You’re not the only one to have thought of this, btw.)

If you’re really committed to this, have him get married to a friend’s kid - then you solve the problem for 2 families! Your kids can file as independent! The kids can get divorced after graduation. The only other option is for your kid to have a baby - which will certainly be more expensive than whatever you save in aid money.

He is not on financial aid at all. Never even applied.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Can I gift my child enough money for tuition and living expenses, not claim him as a dependent on my tax return, have him file as independent, and have him claim residency in MD? He has part-time job in MD, rents in MD, and has MD driver’s license and voter registration.

I know he has to provide more than 50% of his support. Does the gifted money (which he owns) count as providing his own support? He is on our health insurance if that matters.

You do not need to gift him the money.

If he is over 18 you can have him file his own takes, no longer claim him as a dependent on your taxes and he needs to have lived full time himself for one year in the state in question to get instate tuition. He will have to take care of all the paper work. Change his drivers license to that state for one year before applying for a change in residency.

People do this all the time. They buy condo's near a college or townhouses or houses. It's pretty common.

Every school has it's own list of residency requirements please have your child read them. Some schools are easier to get this chnage than others. Gifting him monies is not a good idea.

Your plan doesn't work for an already enrolled student who moved to Maryland for college.

He didn’t move to MD for college. He lived here all his life and graduated from MD public schools.

[Anonymous]

Anonymous wrote:Can I gift my child enough money for tuition and living expenses, not claim him as a dependent on my tax return, have him file as independent, and have him claim residency in MD? He has part-time job in MD, rents in MD, and has MD driver’s license and voter registration.

I know he has to provide more than 50% of his support. Does the gifted money (which he owns) count as providing his own support? He is on our health insurance if that matters.

The irs ‘gift’ limit is 15K. You will likely exceed that with tuition and board. Don’t think you can get around him being your dependent if you are paying tuition and living expenses. As a dependent, if you move, he moves. The in-state program is for residents, paid for by md taxpayers which you will no longer be. I’m sorry but you are trying to cheat myself and all the other md taxpayers. Do you think anyone should be eligible for in-state at any state they’ve ever lived in? Not how it works.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Can I gift my child enough money for tuition and living expenses, not claim him as a dependent on my tax return, have him file as independent, and have him claim residency in MD? He has part-time job in MD, rents in MD, and has MD driver’s license and voter registration.

I know he has to provide more than 50% of his support. Does the gifted money (which he owns) count as providing his own support? He is on our health insurance if that matters.

You do not need to gift him the money.

If he is over 18 you can have him file his own takes, no longer claim him as a dependent on your taxes and he needs to have lived full time himself for one year in the state in question to get instate tuition. He will have to take care of all the paper work. Change his drivers license to that state for one year before applying for a change in residency.

People do this all the time. They buy condo's near a college or townhouses or houses. It's pretty common.

Every school has it's own list of residency requirements please have your child read them. Some schools are easier to get this chnage than others. Gifting him monies is not a good idea.

Your plan doesn't work for an already enrolled student who moved to Maryland for college.

He didn’t move to MD for college. He lived here all his life and graduated from MD public schools.

Got it. This is far easier to pull off than the other way around. Do everything that you have outlined. Also have him change the address to which tuition bills and everything else that he gets from college are sent from your home to his apartment. Then he'll be fine.

[Anonymous]

Anonymous wrote:OP here. He was born in and lived in MD his entire life. Graduated from MD public schools. We currently live in MD and have lived here and worked here (and he works here) for his entire life.

He is our last child and we are thinking of moving out-of-state. I am not trying to scam anyone. I’m looking for answers as to what is legal.

Actually, you are looking to scam and save a few bucks by pretending that your child is independent when he is not--he is not financing his own education. If you do this I really hope you end up in jail. Just because you are looking to move out of state does not change that status. People who are actually independent do not have mommy and daddy lining their bank account. We pay our own way, which is clearly something your child is incapable of doing.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Can I gift my child enough money for tuition and living expenses, not claim him as a dependent on my tax return, have him file as independent, and have him claim residency in MD? He has part-time job in MD, rents in MD, and has MD driver’s license and voter registration.

I know he has to provide more than 50% of his support. Does the gifted money (which he owns) count as providing his own support? He is on our health insurance if that matters.

The irs ‘gift’ limit is 15K. You will likely exceed that with tuition and board. Don’t think you can get around him being your dependent if you are paying tuition and living expenses. As a dependent, if you move, he moves. The in-state program is for residents, paid for by md taxpayers which you will no longer be. I’m sorry but you are trying to cheat myself and all the other md taxpayers. Do you think anyone should be eligible for in-state at any state they’ve ever lived in? Not how it works.

Spare OP your sanctimony. They've lived in MD and paid taxes the kid's whole life. We moved to DC from VA when our youngest was still in VA state school and had no moral qualms continuing to pay in state tuition even though some might have thought we shouldn't be. We had live in VA for 25 years and paid our dues.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Can I gift my child enough money for tuition and living expenses, not claim him as a dependent on my tax return, have him file as independent, and have him claim residency in MD? He has part-time job in MD, rents in MD, and has MD driver’s license and voter registration.

I know he has to provide more than 50% of his support. Does the gifted money (which he owns) count as providing his own support? He is on our health insurance if that matters.

The irs ‘gift’ limit is 15K. You will likely exceed that with tuition and board. Don’t think you can get around him being your dependent if you are paying tuition and living expenses. As a dependent, if you move, he moves. The in-state program is for residents, paid for by md taxpayers which you will no longer be. I’m sorry but you are trying to cheat myself and all the other md taxpayers. Do you think anyone should be eligible for in-state at any state they’ve ever lived in? Not how it works.

The gifts have never exceeded IRS limits. They were gifted over many years. As I stated earlier, we are not trying to game they system. We are and have been MD residents his entire life. I am simply asking about what makes a student independent (does paying for expenses out of HIS bank account count as supporting himself)?

Why do people keep saying I’m trying to game the system? We are decades long MD taxpayers and residents. We are not applying for financial aid.

[Anonymous]

OP, it would help to clarify, because it is not at all clear what the facts are here. In what state does your kid currently have residency? Is your kid currently a student at UMD (or other Maryland college)?

The UMD residency requirements are spelled out on the website. http://registrar.umd.edu/Residency/resreclassfaq.html If your situation is not included there, call them and ask your specific question.

You may wish to consult the following:
http://www.usmd.edu/regents/bylaws/SectionVIII/viii270.pdf

http://registrar.umd.edu/petitions-forms/PetitionEffectiveSpring2018.pdf
http://registrar.umd.edu/petitions-forms/RCOchecklistSpring2018.pdf,

Likewise, rules for being considered independent for the purpose of financial aid are set forth on the FAFSA site. https://studentaid.gov/apply-for-aid/fafsa/filling-out/dependency#dependent-or-independent

If kid is currently an OOS resident, whether you move away from your current non-MD state doesn't seem relevant.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP here. He was born in and lived in MD his entire life. Graduated from MD public schools. We currently live in MD and have lived here and worked here (and he works here) for his entire life.

He is our last child and we are thinking of moving out-of-state. I am not trying to scam anyone. I’m looking for answers as to what is legal.

Actually, you are looking to scam and save a few bucks by pretending that your child is independent when he is not--he is not financing his own education. If you do this I really hope you end up in jail. Just because you are looking to move out of state does not change that status. People who are actually independent do not have mommy and daddy lining their bank account. We pay our own way, which is clearly something your child is incapable of doing.

How do you know my child is incapable of doing that? He has more than half of his tuition paid by merit scholarship and he started a business making over 10 grand a year. That business is based in MD and he pays MD taxes.

[Anonymous]

Anonymous wrote:OP, it would help to clarify, because it is not at all clear what the facts are here. In what state does your kid currently have residency? Is your kid currently a student at UMD (or other Maryland college)?

The UMD residency requirements are spelled out on the website. http://registrar.umd.edu/Residency/resreclassfaq.html If your situation is not included there, call them and ask your specific question.

You may wish to consult the following:
http://www.usmd.edu/regents/bylaws/SectionVIII/viii270.pdf

http://registrar.umd.edu/petitions-forms/PetitionEffectiveSpring2018.pdf
http://registrar.umd.edu/petitions-forms/RCOchecklistSpring2018.pdf,

Likewise, rules for being considered independent for the purpose of financial aid are set forth on the FAFSA site. https://studentaid.gov/apply-for-aid/fafsa/filling-out/dependency#dependent-or-independent

If kid is currently an OOS resident, whether you move away from your current non-MD state doesn't seem relevant.

He is currently at UMD. Currently in-state resident. Not looking for financial aid (not qualified due to HHI).

[Anonymous]

Anonymous wrote:That wont make your kid independent from the perspective of a financial aid office. I was 29, completely financially independent for 7 years, married for 3 years, and my law school financial aid office still required me to submit my parents' financial information.

That is truly bizarre. My husband went back to school after we were married, had kids and owned a house. He had been living independently, supporting himself for over 20 years. He never had to submit his parents' financial information. In fact, his parents weren't even aware that he had gone back to school - he wanted to surprise them, which he did. Maybe it's because he continued to work full time and was receiving tuition assistance from his job?

[Anonymous]

Anonymous wrote:It sounds like OP's son moved to MD from out of state for college and has been paying OOS tuition, and now that he's an upperclassman OP hopes he can pay in state tuition. That's not how it works, OP.

It is in other states, and why not? My brother did this at Clemson. Virginia won’t let you do it. I see nothing wrong with a kid getting in state tuition if he has a year round lease, a job and a drivers license and voter registration in that state.

[Anonymous]

Anonymous wrote:He is currently at UMD. Currently in-state resident. Not looking for financial aid (not qualified due to HHI).

So just to be clear, kid is in-state, parents in-state, but parents are looking to move out of state. I strongly suspect he would keep his in-state residency. Do you see something on the website indicating otherwise? (It would be helpful if you could quote and link to that.) If there is nothing relevant on the website, I would call and ask. I suspect that there is no need to prove independence.