What are the qualifications for a dependent for tax purposes? This article describes what you should know regarding dependents.
There are a few assessments that a person must pass in order to qualify as a dependent on a U.S. tax return. For starters, individual must be the taxpayer's child, stepchild, foster child, sibling or stepsibling, or a relative of one of these, and the individual must live at the taxpayer's residence for greater than 6 months of the tax year. Know that there are exceptions for kids of divorced parents, kidnapped children, and for kids who were born or died during the year.
The person must be under 19 years of age, or 24 if a full-time student. He should also not have contributed more than half toward his own support during that year. Other qualifying points include, U.S. citizenship and single status or married filing as a single person.
If the person has all these qualities, then any of the applicable deductions, exemptions, and credits can be used for them. Some of these would include dependent day care expenses, child tax credits, medical expenses, earned income credit, and various deductions. When determining eligibility, it would often mean the difference between owing money to the government and receiving a refund from them.
For child and dependent care services, day-care, after-school programs, private childcare services, and many more would be included. Know that the child and dependent care expenses are only good for kids below 13 years of age.
Child tax credit is quite similar to the earned income credit because it's a straight credit. Taxpayers who have dependents under 17 years of age can only take the child tax credit.
It takes some effort to determine if you have dependents that you can claim on your annual tax return, but it's worth it. You can get a tax refund that your dependent will give you the opportunity to claim.
There are a few assessments that a person must pass in order to qualify as a dependent on a U.S. tax return. For starters, individual must be the taxpayer's child, stepchild, foster child, sibling or stepsibling, or a relative of one of these, and the individual must live at the taxpayer's residence for greater than 6 months of the tax year. Know that there are exceptions for kids of divorced parents, kidnapped children, and for kids who were born or died during the year.
The person must be under 19 years of age, or 24 if a full-time student. He should also not have contributed more than half toward his own support during that year. Other qualifying points include, U.S. citizenship and single status or married filing as a single person.
If the person has all these qualities, then any of the applicable deductions, exemptions, and credits can be used for them. Some of these would include dependent day care expenses, child tax credits, medical expenses, earned income credit, and various deductions. When determining eligibility, it would often mean the difference between owing money to the government and receiving a refund from them.
For child and dependent care services, day-care, after-school programs, private childcare services, and many more would be included. Know that the child and dependent care expenses are only good for kids below 13 years of age.
Child tax credit is quite similar to the earned income credit because it's a straight credit. Taxpayers who have dependents under 17 years of age can only take the child tax credit.
It takes some effort to determine if you have dependents that you can claim on your annual tax return, but it's worth it. You can get a tax refund that your dependent will give you the opportunity to claim.
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