Thursday, January 8, 2015

Can you claim your bae as a dependent for taxes?

We all know if you don't have kids to claim for tax season, then most likely you ain't getting back a huge refund from Uncle Sam. Well that may true, but you can still claim head of household filing status with a qualifying relative. Many people don't know this fact plus they are not sure how to enter a qualifying relative in the tax software's as to not trigger an audit.  It's a common mistake, that the IRS will not automatically tell you about. They do their jobs to take your money, and you should do yours to get theirs!

To help clarify the difference with qualifying child and qualifying relative, I've indicated below who can be claim and under what circumstances. I've also included a link to the IRS website where you can play with the app to see if that person you've been supporting can be claimed. Hope this helps. Call me if you have more questions: 407.716.8518.
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 Criteria for who qualifies as a "child." Here are the highlights [source: IRS]:
  • Relationship: A "child" can either be a biological child of the taxpayer, a stepchild, an adopted or foster child, or even a sibling or stepsibling of the child. Descendants of any of these folks are also OK.
  • Residence: The child must live with the taxpayer for more than half of the tax year.
  • Age: The child must be under 19 on Dec. 31 of the tax year, or under 24 if a full-time student.
  • Support: The taxpayer must provide more than half of the child's financial support for the year.
Dependents who are not children are called qualifying relatives. Here are the criteria [IRS]:
  • Relationship: Parents, great aunts, cousins, step-brothers all qualify -- in fact, you don't have to be related to the person at all, provided they meet the other requirements.
  • Residence: An actual relative does not have to live with the taxpayer, but nonrelatives like roommates or friends have to live with the taxpayer full-time.
  • Age: A qualifying relative can be any age.
  • Support: The taxpayer needs to provide more than half of the dependent's financial support during the tax year and the dependent's gross income must be less than the personal exemption of $3,950 in 2014
    . Also, the dependent cannot take the personal exemption on his or her tax return at the same time

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