Start For Free

Fast, Secure, and Always Accurate!
Help Categories

What are the qualifications for claiming a person as a Dependent or a Qualifying Child on my return?

Individuals who rely on you for support and reside in your house generally qualify for dependent tax exemptions. However, there are situations when a child's exemption status is more complicated. The IRS has special rules for these situations. Identifying the individuals who qualify for your dependent exemptions is usually pretty simple. In most cases, children for whom you provide support and a home qualify as dependent exemptions. Often, dependents do not fall into this exact description, so the IRS has designed five tests to determine whether a child or dependent can be considered an exemption. These five requirements are: • citizenship • support • gross income • joint return • relationship We suggest you complete this simple process for each dependent so you do not make any costly errors on your tax return. In order for you to claim an exemption for a dependent there are five requirements that must be met by each individual: Citizenship To qualify for an exemption your dependent must either be: • a US citizen, • a resident of the US, Canada, or Mexico for part of the year, • a legally adopted foreign child who now resides in the US, or • an adopted child living with you the entire year in a foreign country. Relationship To qualify for an exemption your dependent must either be: • a relative or • a member of your household for the entire year. Note: Relatives do not need to live in your house to qualify as a dependent exemption. Non-relatives can be claimed as dependent exemptions only if they also live in your house. Joint Return To qualify for an exemption your dependent can NOT: • file a joint return with a spouse. Note: This means that a taxpayer is allowed to claim a married dependent as an exemption if all other four tests are met and the dependent uses the married filing separately status . Gross Income To qualify for an exemption your dependent can NOT: • have a gross income of more than $4,000. Note There are exceptions to this rule, which are discussed below . Support To qualify for an exemption your dependent must: • receive more than one-half of his/her total support from you. You should disregard the gross income test in any of the following cases. If the dependent is: • your child, and is under age 19 on Dec 31 (Tax Year). • your child, under 24 on Dec 31, (Tax Year), and a full time student for at least five months during (Tax Year). - IF YOUR CHILD IS A FULL-TIME STUDENT, BE SURE TO ENTER 12 MONTHS AS THE AMOUNT OF TIME THEY LIVED WITH YOU • a permanently and totally disabled person and receives an income for services performed for a tax-exempt organization.

How do I report qualifying education expenses that I paid with a 1099-Q distribution?

If you contributed to a Coverdell ESA (CESA) or a Qualified Tuition Program (QTP), you may have received a distribution from your account during the year to help pay for qualified education expenses. If so, you should have received a Form 1099-Q to report your distribution to you. There are a few ways that you can report this on your return. Unfortunately, depending on your particular circumstances, one way may work better than the other. There is not one way that always works best. For an example of how the below options can be used, click here . Option 1: Use your expenses to exclude the 1099-Q earnings from income. If you receive a Form 1099-Q for your distribution, the earnings may be included in your return. If you used the distribution to pay for qualified expenses, then the earnings can be excluded from your return. To do so, you would report your qualified expenses on the 1099-Q entry page (Income Menu > Other Income > Payments from Qualified Education Programs: Form 1099-Q) . If you report your expenses here, you cannot report the same expenses for either a Tuition and Fees Deduction or an Education Credit . You would then only be able to list in one of those sections the amount of expenses that were paid out-of-pocket and that you did not list as being paid with your 1099-Q distribution. Option 2: Use your qualified expenses for a Tuition and Fees Deduction or Education Credit . If you choose, you can receive a larger Tuition and Fees Deduction or Education Credit by reporting ALL of your qualified expenses for that deduction or credit. However, the result of this would be that your 1099-Q earnings would be included fully in your income. To do this, you would list the expenses for the appropriate deduction or credit, and you would not report any expenses on the entry page for your 1099-Q. IMPORTANT: Whichever option you choose, you can only list the same expenses once. For example, if you paid a total of $5000, you can list $2000 in one section and $3000 in another; Or you can list all $5000 in just one section and leave the others blank. However, you COULD NOT list $5000 on your 1099-Q entry page AND $5000 for an Education Credit. Regardless of how you report your expenses, the total of all expenses listed on your return should add up to be the total of expenses that you paid for the year. For more information, please review Form 1099-Q .

Itemized Deductions - An Overview

(Form 8283) Gifts to charity include both cash and non-cash gifts. If you donated money or property to a qualifying charitable organization, or if you used your personal vehicle for "charitable mileage", you generally can deduct

How to enter your cash contributions

Cash contributions can be entered separately based on the Charity group and date donated or they can be grouped together as one entry. To enter your contributions separately, complete the information requested and select "Continue to next

Colorado Subtractions from Income

from mutual funds may not be 100% exempt. PENSION AND ANNUITY SUBTRACTION You might be eligible to subtract the income earned from a pension or annuity. Enter the qualifying amount if you: Earned income from a pension/annuity

Michigan Subtractions from Income

distribution from a pension or retirement plan that is contributed to a qualifying charitable organization. To qualify, you must make the payment to the charity within 60 days of receiving the distribution, and reduce the amount

Federal Section > Deductions > Itemized Deductions

and Expenses · Gifts to Charity · Unreimbursed Employee Business Expense · Job-Related Travel Expenses · Miscellaneous Deductions · Less Common Deductions, including: Business Use of Your Home, Casualties and Losses, and Investment Interest

Special Charitable Contributions for Certain IRA Owners

As an alternative method for donating to a charity, certain taxpayers may transfer funds from their IRA to an eligible charitable organization. Here are ten things taxpayers who are thinking about making such a donation will need to know

Charitable Contributions

Did you make a cash contribution to your favorite charity? Have you recently spent a weekend cleaning stuff out of your garage or basement that you then donated to a local charity? Charitable contributions can be tax deductible, but you

Connecticut Credit for Taxes Paid to Another State

on the resident's out-of-state wages. You must also attach a copy of your return filed with the qualifying state(s) or the credit will be disallowed. Note : TaxSlayer will automatically submit the additional return on your behalf when