83

For people that don't earn very much, the largest single financial event of the year is often getting a large tax refund thanks to the Earned Income Credit and the Child Tax Credit. These refundable credits can result in people getting refunds for thousands more than what they had withheld over the year. This makes fraudulently claiming dependents ...


35

There are no pure income requirements when claiming someone as a dependent - the main requirement is that your parents need to have provided more than half of your support for the year. Since they paid $22k in education expenses and you only made $20k, certainly they paid for more than half of your support (even if it were less, they could claim that they ...


30

I feel like you're getting overwhelmed with all of the variables and possible scenarios and are trying too hard to optimize your taxes and budget. I would suggest simplifying things and not trying to polish too much. When expecting a child or any other significant life changing event, it is often wise (and helpful emotionally) to save up as much cash as ...


26

For FAFSA purposes, your financial information is required regardless if you claim her or don't. In the federal government’s eyes, parents are responsible for their children’s’ education, regardless of whether or not the parents can actually pay. The following are the only ways she can be a independent student and not include parental information on the ...


20

The good news is that he probably won't be required to pay SS taxes. The bad news is that the reason will be because he can't get a job without a SSN. You don't get to just opt out of the social security system wholesale like that. However, there are some career options to avoid paying into (or getting paid out of) social security including jobs with ...


18

Not getting SSN has nothing to do with his/her liability to pay SS taxes. It just makes the life more complicated and you forgo your own tax benefits that you must have child's SSN to get. To request an exemption, your child must qualify under certain conditions and file a formal request for exemption with the SSA. See here for more details.


16

You are required to supply a Social Security Number (SSN) when claiming someone as a dependent on your tax return. Or, use an Individual Taxpayer Identification Number (ITIN) if they are not eligible for an SSN. In the event of a time crunch (tax deadline approaching) you have two options: Go ahead and file (and not claim them), then later file an amended ...


15

As long as the baby was born by December 31, 2015, he can be claimed as a dependent by his parents for tax year 2015. He should definitely be claimed as a dependent; it will save them money on their taxes, and there is no reason not to. The baby does not need to file a tax return, but he does need a Social Security number in order for the parents to claim ...


15

The bottom line is that children are expensive. It is highly unlikely that you will recoup a significant costs of having children through tax savings. While many parents go overboard on spending, finding a high quality day care is necessary. Skimping too much on day care is not worth the cost savings. To further complicate matters, most high quality day ...


13

First of all, the two options you mentioned are not mutually-exclusive: You could claim her as a dependent, AND she could file her own taxes. Those are separate decisions. Depending on her income for 2016, she may or may not be required to file taxes. However, even if she is not required to file, if she had any taxes withheld from her paycheck, she ...


11

Whether someone needs to file a tax return for a given year is covered in a section at the beginning of each year's Form 1040 instructions, called "Do You Have to File?". Generally, if the income that year is below a certain threshold (this threshold varies depending on filing status, whether the person is claimed as a dependent, and other factors), then the ...


11

There are lots of "ifs" with regarding claiming someone as a dependent. TurboTax has a pretty good breakdown here. However, the biggest qualification is: The person must be a U.S. citizen, a U.S. national, a U.S. resident, or a resident of Canada or Mexico. Therefore, as a result you cannot claim your mother as a dependent until she fulfills that ...


9

Well, one of the requirements for you to be able to claim someone as a dependent is that he/she must be a U.S. citizen or resident alien. So the key issue here is whether your parents are resident aliens. Someone is a resident alien if they pass either the substantial presence test, or the green card test. Your parents don't have green cards, so it's the ...


9

For the record, I am the original question-asker and I'm reporting back to say that the approach described in the accepted answer did not work. I am adding a new answer, rather than commenting on the accepted answer, because of the length of explanation required. I applied for an ITIN by filing a W-7 with all appropriate documentation, including a birth ...


9

First thing, it's scary having your first but you'll work it out. Just breathe. The good news is that you can afford daycare! You will even have money left over at the end of the month so you can buy diapers. This is not a terrible position to be in. You just need to figure out some ways to save money. If your job and/or wife's job offer dependent-care ...


8

It seems that counting your father as your dependent shouldn't, in itself, cause him to be ineligible for SNAP. Eligibility requirements for SNAP can be found on this FNS page. There are upper limits on the "countable resources, such as a bank account" that the beneficiary's household may have, and on that household's income. (There are some other ...


8

Every person has one personal exemption($4050 in 2016). They are either assigning it to their tax form, or they are acting as a dependent and assigning it to another persons tax form. So for 2016 (assuming you file jointly) your tax form will have two personal exemptions (spouse_1 and spouse_2). The IRS looks at your marital situation on December 31st (...


8

The request for your parent's income comes from Form 8615, Tax for Certain Children Who Have Unearned Income. I typically see this form appear as I'm doing my daughter's taxes and start to enter data from stock transactions. In other words, your earned income is your's. But if you are a dependent, or 'can be,' the flow avoids the potentially lucrative ...


8

I signed the checks "JoeTaxpayer, parent" and never had an issue with my bank. Note, I am in the US, and my experience may just be with my particular bank.


8

Whether or not you are a dependent is a separate issue from whether or not you must file a tax form. Per page 17 of the 2016 instructions for Form 1040, you can be claimed as a dependent by your parents if you are their child, under the age of 24 and a student, and they provided over 50% of your support (living expenses). There are other factors that can ...


8

https://turbotax.intuit.com/tax-tips/family/can-i-claim-a-boyfriend-girlfriend-as-a-dependent-on-income-taxes-/L12RRXt6j Your boyfriend or girlfriend must be a member of your household, meaning that he or she lived with you for the entire calendar year. The law makes exceptions for temporary absences, such as vacations and medical treatment, but your ...


7

From IRS Publication 17, top of page 26, 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. So, what is your parents' status vis a vis this point?


7

You are only responsible for IRS debt that you owe from returns that you have filed for yourself. The back taxes that your dependent owes are between him and the IRS.


6

ITIN's can be granted for deceased minors via Form W-7: Choose "Dependent of U.S. citizen/resident alien" as the reason for applying. You are required to write "DECEASED" across the top of the form, and you will have to provide a birth certificate and potentially other supporting documentation. The directions are not super clear for this use-case, but I'...


6

Congratulations on the new arrival! Technically, a gift by check to the baby should be deposited into a newly established custodial account in the baby's name. To open one, you will need to have a SSN for the baby, so don't wait till tax time to request one (you will need the SSN if you wish to claim the baby as a dependent on your 2017 income tax returns). ...


6

Under the new tax code, you do not have personal "exemptions", just an expanded child tax credit. So those with an under 17 year old child have a benefit to claim. Yes, you can adjust allowances to account for this. In fact, you are allowed to open a 529 account as well once the pregnancy is documented. This is also part of the new tax code.


6

The ability to claim children are typically addressed in divorce or separation agreements. Without the agreements in place, either the custodial parent or in some cases whoever files their taxes first typically is able to claim the dependents. The IRS currently will mediate on who the correct person is to claim the dependents. If a person has the right ...


6

The rules for whether you have to file a federal tax return are in the beginning of the relevant tax year's Form 1040 instructions, in a section near the beginning called "Do You Have To File?". You can be claimed by someone as a dependent, so you would use Chart B. You are single, and not not 65 or older, so (for year 2017) you must file if any of the ...


6

I am not a lawyer. The issue revolves around answering a series of questions: Have you signed anything that assigns financial responsibility to you regarding their debts? Due to a disability they have, are you a guardian of your parents? Do you have power-of-attorney? For medical debt are you listed as the responsible party for their health coverage? Did ...


6

The accepted answer is fine for situations where a dependent does not yet have an SSN, but may not be appropriate for when your spouse does not yet have an SSN. If your spouse is not yet eligible or will not become eligible to get an SSN, you apply for an ITIN when you file your taxes, not before or after filing your tax return. Fill out your tax return ...


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