Dependent can't make more than $3600??

SkyHog

SkyHog

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When the hell did that happen? That pretty much excludes claiming a teenager, living under your roof these days, right?
 
Each year when I work my way through Turbo Tax, I really think Steve Forbes was onto to something with his "postcard tax return" idea.
 
AggieMike88 said:
Each year when I work my way through Turbo Tax, I really think Steve Forbes was onto to something with his "postcard tax return" idea.
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Definitely.

Absolutely.

Heck YEAH!!!
 
A national sales tax, and do away with income tax all togeather.
 
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I know the UK has the VAT, but do they do income tax too?
 
mantakos said:
The income limit doesn't apply if the dependent is your "child" (where child means a lot of things besides just your child):-harry
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See, I'm seeing otherwise:

Tests To Be a Qualifying Child
  1. The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them.
  2. The child must be (a) under age 19 at the end of the year and younger than you (or your spouse, if filing jointly), (b) under age 24 at the end of the year, a full-time student, and younger than you (or your spouse, if filing jointly), or (c) any age if permanently and totally disabled.
  3. The child must have lived with you for more than half of the year.2
  4. The child must not have provided more than half of his or her own support for the year.
  5. The child is not filing a joint return for the year (unless that joint return is filed only as a claim for refund).
  6. If the child meets the rules to be a qualifying child of more than one person, you must be the person entitled to claim the child as a qualifying child.
Tests To Be a Qualifying Relative
  1. The person cannot be your qualifying child or the qualifying child of any other taxpayer.
  2. The person either (a) must be related to you in one of the ways listed under Relatives who do not have to live with you, or (b) must live with you all year as a member of your household2 (and your relationship must not violate local law).
  3. The person's gross income for the year must be less than $3,650.3
  4. You must provide more than half of the person's total support for the year.4

1There is an exception for certain adopted children. 2There are exceptions for temporary absences, children who were born or died during the year, children of divorced or separated parents or parents who live apart, and kidnapped children. 3There is an exception if the person is disabled and has income from a sheltered workshop. 4There are exceptions for multiple support agreements, children of divorced or separated parents or parents who live apart, and kidnapped children.
 
SkyHog said:
See, I'm seeing otherwise:


Tests To Be a Qualifying Child
  1. The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them.
  2. The child must be (a) under age 19 at the end of the year and younger than you (or your spouse, if filing jointly), (b) under age 24 at the end of the year, a full-time student, and younger than you (or your spouse, if filing jointly), or (c) any age if permanently and totally disabled.
  3. The child must have lived with you for more than half of the year.2
  4. The child must not have provided more than half of his or her own support for the year.
  5. The child is not filing a joint return for the year (unless that joint return is filed only as a claim for refund).
  6. If the child meets the rules to be a qualifying child of more than one person, you must be the person entitled to claim the child as a qualifying child.
Tests To Be a Qualifying Relative
  1. The person cannot be your qualifying child or the qualifying child of any other taxpayer.
  2. The person either (a) must be related to you in one of the ways listed under Relatives who do not have to live with you, or (b) must live with you all year as a member of your household2 (and your relationship must not violate local law).
  3. The person's gross income for the year must be less than $3,650.3
  4. You must provide more than half of the person's total support for the year.4
1There is an exception for certain adopted children. 2There are exceptions for temporary absences, children who were born or died during the year, children of divorced or separated parents or parents who live apart, and kidnapped children. 3There is an exception if the person is disabled and has income from a sheltered workshop. 4There are exceptions for multiple support agreements, children of divorced or separated parents or parents who live apart, and kidnapped children.
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Interesting, on your kid having to be younger than your spouse. No more marrying the 19-year old asssitant and keeping the deduction if your kid is still in college.
 
SkyHog said:
See, I'm seeing otherwise:

Tests To Be a Qualifying Child
  1. The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them.
  2. The child must be (a) under age 19 at the end of the year and younger than you (or your spouse, if filing jointly), (b) under age 24 at the end of the year, a full-time student, and younger than you (or your spouse, if filing jointly), or (c) any age if permanently and totally disabled.
  3. The child must have lived with you for more than half of the year.2
  4. The child must not have provided more than half of his or her own support for the year.
  5. The child is not filing a joint return for the year (unless that joint return is filed only as a claim for refund).
  6. If the child meets the rules to be a qualifying child of more than one person, you must be the person entitled to claim the child as a qualifying child.
Tests To Be a Qualifying Relative
  1. The person cannot be your qualifying child or the qualifying child of any other taxpayer.
  2. The person either (a) must be related to you in one of the ways listed under Relatives who do not have to live with you, or (b) must live with you all year as a member of your household2 (and your relationship must not violate local law).
  3. The person's gross income for the year must be less than $3,650.3
  4. You must provide more than half of the person's total support for the year.4

1There is an exception for certain adopted children. 2There are exceptions for temporary absences, children who were born or died during the year, children of divorced or separated parents or parents who live apart, and kidnapped children. 3There is an exception if the person is disabled and has income from a sheltered workshop. 4There are exceptions for multiple support agreements, children of divorced or separated parents or parents who live apart, and kidnapped children.
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A qualifying relative is different from a qualifying child. As an example:

I am married. My wife does not work. I have 3 kids. My mother in law lives with me. My mother in law had less than $3,000 in income last year. My three children, 25, 21, and 14 all have jobs. The 21 year old is a full time college student. The 14 year old is in high school. The 25 year old qualifies are permanently disabled.

In this case, I claim 3 child dependents (25 passes the 2(c) test, 21 the 2(b) test, and 14 the 2(a) test), and 1 relative dependent (passes the relative dependent test), and file jointly with my wife. My children may also be required to file an income tax return if they have any income in that year.

The difference is I am claiming a child as a "qualifying child", and my mother in law as a "qualifying relative".

A tax dependent is a qualifying child OR a qualifying relative.

So, your children do not need to pass the relative test, and your mother-in-law the child test. Make sense?

(this reminds me, my mother in law lived with us for 6 months this year. I think I can claim her as a qualified dependent this year...)

Cheers,

-Andrew
 
EdFred said:
Interesting, on your kid having to be younger than your spouse. No more marrying the 19-year old asssitant and keeping the deduction if your kid is still in college.
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Just can't file jointly, is how I read that. Marry 19 year old assistant, file separately. Rinse, repeat.

Cheers,

-Andrew
 
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