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Tax Law (Questions About Taxes)/Out of state dependent student


I am a full-time college student (living on campus) in Indiana, but I live in Illinois with my parents when I am not in college. I do not have any source of income in Illinois, but I started working in Indiana at the beginning of December.

My first question is, do I even need to file taxes in 2014 if I began working in December and have earned less than $500 in wages thus far? And if so, if my parents want to claim my income on their Illinois tax return since I am considered a dependent of theirs, is there anything in particular that needs to be done when my parents' file their taxes? Also, is there a separate form I need to complete?

I have been told that there is a spot on the Illinois tax return for "credit for tax paid to another state" where the taxes paid to Indiana can be accounted for, and that I will also need to file a non-resident tax return for Indiana. However, my parents and I are still a bit confused on how the whole thing will work, and thank you in advance for any clarification.


Thanks for your question.

They don't need to do anything special, just claim you as a dependent.

Since your earnings were under $500, the only reason you would need to file would be to get any income taxes that were withheld.  If you do file, do not claim a dependency exemption.

Hope this helps.

John Stancil, CPA

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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