What does it mean to claim financial independence from your parents?

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asked May 14 in Other-Finance by Rominee (240 points)
What does it mean to claim financial independence from your parents?

1 Answer

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answered May 14 by Christeen (15,760 points)
When you're claiming financial independence from your parents it means that your parents cannot claim you as a dependent on their own tax return.

Being financially independent from your parents means that you get more tax breaks for yourself and your parents are entitled to less tax breaks since they can't claim you as a dependent.

When you become financially independent from your parents you get a personal exemption that means your taxable income will be lower.

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