Attention Parents! 3 Tax Tips to Maximize Your Tax Refund [video]

Family

Your kids can mean big savings come tax-time.  Find out how.

Comments (23) Leave your comment

  1. I claim head of household I have three defendants and I also worked all year gross income about 23,000 not sure on amount paid in, what could I roughly see for tax return?

  2. I have 19 year old daughter that lives with me and works.she also goes to college and I pay for her college tuition every month.she gives me no money rent so can I claim her even if she is working

    1. There is a dependency tests, I believe in Publication 17. You can call the IRS and they send it to you and even explain and step you thru it over the phone. Of course with laws changing, it is always good to check the Publication each year. Also if you are qualify by the tests on the paid amount for the child, they don’t even have to live with you. Example, you pay their living expenses of their rent, food and other expenses.

      Refer here for the IRS online Publication 17 tests.
      http://www.irs.gov/publications/p17/ch03.html#en_US_2014_publink1000170876

      Other reference.
      http://www.goodfinancialcents.com/5-tests-claim-dependent-tax-return/
      _________________________
      Table 3-1. Overview of the Rules for Claiming an Exemption for a Dependent
      Caution. This table is only an overview of the rules. For details, see the rest of this chapter.
      •You cannot claim any dependents if you (or your spouse, if filing jointly) could be claimed as a dependent by another taxpayer.
      •You cannot claim a married person who files a joint return as a dependent unless that joint return is filed only to claim a refund of withheld income tax or estimated tax paid.
      •You cannot claim a person as a dependent unless that person is a U.S. citizen, U.S. resident alien, U.S. national, or a resident of Canada or Mexico.*1
      •You cannot claim a person as a dependent unless that person is your qualifying child or qualifying relative.
      ___________

      [Tests To Be a Qualifying Child] From the IRS publication. see IRS Link above for full details.

      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 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.There are exceptions for multiple support agreements, children of divorced or separated parents (or parents who live apart), and kidnapped
      children.

      4.The child must not have provided more than half of his or her own support for the year.

      5.The child must not be filing a joint return for the year (unless that return is filed only to get a refund of income tax withheld or estimated tax paid).

      If the child meets the rules to be a qualifying child of more than one person, only one person can actually treat the child as a qualifying child. See the Special Rule for Qualifying Child of More Than One Person to find out which person is the person entitled to claim the child as a qualifying child.
      ____________
      [This is a qualifying test for relatives.] See Publication 17 IRS Link above for details

      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 $3,950.

      4.You must provide more than half of the person’s total support for the year.

      =====
      Dependent not allowed a personal exemption. If you can claim an exemption for your dependent, the dependent cannot claim his or her own personal exemption on his or her own tax return. This is true even if you do not claim the dependent’s exemption on your return. It is also true if the dependent’s exemption on your return is reduced or eliminated under the phaseout rule described under Phaseout of Exemptions, later.

  3. I have a question – can you claim the earned income credit if my daughter turned 19 in May 2014 and graduated highschool in August.

  4. I taake care of an ageing parent, he only gets ss and needs to have some one with him all the time. Can i claim him as a dependent

    1. Hi Kenneth,
      You can claim your parent as long as:
      – You provide over half of his support
      – He doesn’t make over $3,950 of taxable income
      – He meets the citizenship tests
      TurboTax will help you claim your parent if you are eligible.
      Thank you,
      Lisa Greene-Lewis

  5. How much for the earned income credit can you claim for one dependant? Is there a limit on how much you made in the year to be able to take the earned income credit? Like a max amount? Also my child was born in October 2014, I will be able to claim her on my taxes correct?

    Thank you,
    Nikole

    1. Hi Nikole,
      The maximum you can make with one child and claim the EITC has to be under $38,511. The Earned Income Tax Credit is up to $3,305, but is reduced starting at income of $17,830. If your child was born in October you can claim her. Make sure you have her social security number when you sit down to file your taxes. TurboTax will help you claim the deductions and credits you’re eligible for.
      Thank you,
      Lisa Greene-Lewis

    1. Hi Ron,
      Yes you can. Make sure you have their social security number when you file your taxes.
      Thank you,
      Lisa Greene-Lewis

  6. Can I claim my fiance as a dependent? He’s on my health insurance as my domestic partner and he’s unemployed and I support him.

    1. Hi Nicole,
      You may be able to claim him, if:
      – He lived with you the entire year
      – You provided over half of his support
      – He did not make over $3,950
      – He meets the citizenship test.
      TurboTax will help you get the exemption for your fiance if you are eligible, you don’t need to all of the rules.
      Thank you,
      Lisa Greene-Lewis

    1. Hi Felicia,
      Your child has to be under 19 to claim the Earned Income Tax Credit. Regarding the dependent exemption, you can claim them as a “qualifying child” if they are a full-time college student up to age 24. If they are over 19 and not a student, you may be able to claim them as a “qualifying relative” as long as they did not make over $3,950 and you provided over half of their support.
      Thank you,
      Lisa Greene-Lewis

    1. Margaret,
      The cost to file a tax return will vary, determined by the product you need to properly report your income, but with TurboTax, you can start for free.
      2014 tax returns will be due by April 15, 2015, or with an extension, October 15, 2015.
      Mary Ellen

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