Category Archives: Dependents

When you’re ready to file your return, you may be interested in knowing how you can save money just by being a parent. The sheer act of raising children can reduce the amount of taxes you owe. The following eight options are available to parent taxpayers: Dependent Deduction: Generally, you can claim your child as […]

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At tax time, anything that can help save you money off your tax bill is highly welcomed. These two tax items can put more money in your wallet, where you need it most. Deductions Deductions are a great way to reduce the amount you owe in taxes at the end of the year. Expenses that […]

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Dependents

How Children Can Affect Taxes

November 20, 2015

Are you a parent? It’s important to understand how support you provide to your children can alter your tax liability, and which types of support you can get credit for. Child Credit For each child under the age of 17 that you claim on your tax return, your taxable income is reduced by $1,000. The […]

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Ensuring that you have adequate care for your children when you have to work can really put a damper on your budget. This type of expense may be deductible through the Child and Dependent Care Credit, which is a tax credit available to working parents. This credit can save you Up to $3000, which is […]

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For 2014, taxpayers are eligible to receive an exemption of $3,950 (a fixed amount) if they are responsible for supporting another individual. There are a few other qualifying factors to what is known as the dependency exemption. Provided they meet the requirements, a taxpayer can receive a dependency exemption for each person they support. The […]

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If you are claimed as a dependent on someone else’s tax return, you still may be required to file your own return. To determine whether or not you need to file, consider the following definitions and how they relate to you: Unearned Income – is any taxable interest, ordinary dividends, and capital gains distributions you […]

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If you want to claim your child as a dependent, in most case the child will have to have lived with you for most (over 50%) of the year. Otherwise, the person with whom the child resided, in most cases the parent with legal custody, is the person entitled to the dependent child claim. You […]

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Dependents

Who is a Qualifying Relative?

February 14, 2015

The person for whom a taxpayer claims a dependency exemption for is called a dependent. A dependent must be someone other than the taxpayer or their spouse. There are two different distinctions of dependents: qualifying child and qualifying relative. A dependent must be one of the two classifications, as well as meeting a few other […]

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Dependents

Who is a Qualifying Child?

February 13, 2015

Taxpayers are eligible to claim an exemption for dependents in two separate categories: qualifying child and qualifying relative. By taking a dependent exemption you can lower your taxable income by a specified amount equal to that of the exemption. For example, since the dependency exemption for 2014 is $3,950, an eligible taxpayer can deduct this […]

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Did you know that in some cases, federal tax guidelines allow you to claim children as dependents up to 23 years of age? Typically you can claim children under 19 years old, although there are different guidelines for full-time students. Any child under the age of 24 that is a full-time student may be claimed […]

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