Child Tax

08 Dec Eight Issues to Watch for as You Prepare to Have Your 2021 Income Tax Returns Filed

Posted at 20:58h in Tax Guidance & Preparation, Charitable Contribution, Child Tax, Children, Earned Income Tax Credit, Education Expense, Premium Tax Credit, RMD

As 2021 comes to a close, eight issues to watch for as you prepare to have your 2021 income tax returns filed: required minimum distributions (RMD); charitable contributions; child & dependent care credit; child tax credit; education benefits; qualified principal residence debt cancellation exclusion; premium...

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08 Feb What is a ‘Qualifying Relative’ for US Tax Purposes: IRC 152

Posted at 00:00h in Adoption, Child Tax, Children, Earned Income Tax Credit, IRS Enforcement, Tax Credit, Tax Deductible Expenses, Tax Filing Status, Tax Guidance & Preparation, Tax Problems & Requests

Wading through the convolution required to identify specifically who qualifies as a relative for income tax reporting purposes oftentimes can be difficult, not because the actual tax code is difficult to understand in these regards or even subject to much interpretation.  No, it is difficult...

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17 Jan American Taxpayer Relief Act 2012

Posted at 00:00h in Adoption, Alternative Minimum Tax (AMT), Cancelled Debt, Capital Gain, Charitable Contribution, Child Tax, Employment Tax, Estate Tax, Excise Tax, Generation Ski[[ing Transfer Tax, Social Security Tax, Tax Credit, Tax Guidance & Preparation, Tax Relief

The American Taxpayer Relief Act of 2012 makes permanent many otherwise expiring tax provisions. The following is my summary of what I believe to be relevant provisions: Ordinary income above a certain threshold is taxed at a higher rate. The thresholds are: taxable income of $400,000...

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21 Aug How to Report Your Child’s Investment Income

Posted at 00:00h in Child Tax, Children

If your minor child has been blessed with the opportunity to be endowed with income producing investments be wary as I have witnessed this can indeed become a curse for you on many levels. As if parenting isn't hard enough it seems to only be...

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09 Jul The 5 Tax Benefits of Procreating

Posted at 00:00h in Child Tax, Children

Generally the five tax benefits of having children are the: dependency exemption, child tax credit, earned income credit (EIC), child and dependent care credit and head of household filing status. These benefits can be split only when the parents are separated under a divorce or separation...

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20 Jun Dependent Care Credit IRC 21

Posted at 00:00h in Child Tax, Children, Deductible Expense, Dependent, Employment Tax, Tax Credit

According to Internal Revenue Code Section 21, the maximum tax credit as of this posting date remains at $1,050 (35% of $3,000) for one qualifying individual and $2,100 (35% of $6,000) for two or more. This credit is for expenses paid for the care of your qualifying children...

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25 Apr What is a Qualifying Child for the Child Tax Credit – IRS Publication 972

Posted at 00:00h in Child Tax, Children, Tax Credit

A qualifying child for the child tax credit is someone who meets the qualifying criteria of seven tests: age, relationship, support, dependent, joint return, citizenship and residence. 1. Age test To qualify, a child must have been under age 17 – age 16 or younger – at...

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06 Sep IRS Form 8332 Outweighs Divorce Decree Regarding Dependency Exemption

Posted at 00:00h in Child Tax, Children, Dependent

Section 152(e) of the tax code speciï¬es how to determine the dependent status of children of divorced parents. This code section states that the noncustodial parent can claim the dependency exemption for a child when the custodial parent signs a written declaration that the custodial parent will not claim such child...

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20 Mar If Your Child’s Investment Income is Greater Than $1,900 in 2010 It May Be Taxable at Your Tax Rate

Posted at 00:00h in Child Tax, Children

Children with investment income may have part or all of this income taxed at their parents’ tax rate rather than at the child’s rate. Investment income includes interest, dividends, capital gains and other unearned income. Your child’s tax must be figured using the parents’ rates if...

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23 Sep Education Expenses – Are They Tax Deductible?

Posted at 00:00h in Child Tax, Deductible Expense, Dependent, Disallowed Expenses, Family, Student Loan, Tax Credit, Tax Deductible Expenses, Tax Relief

According to IRS Publication 970, Tax Benefits for Education, questions exist to help determine if education expenses are tax deductible. These questions include: Is the expense associated with the education 'work related'? It must be to be deductible. Is the education in question required by...

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