This article would be talking about wonderful ways you could claim a person as a dependent. Stay tuned let’s learn all that this is about.
Why would one want to claim someone as a dependent?
If you have members that all combine to be your family. The IRS defines all these people for your income tax purposes. These are important because they could save you a lot of money. This could be very high amounts of money. For people that have tax years that are before 2018, all qualified dependents as you claim would reduce your taxable income by the number of exemptions that would be equal to four thousand and fifty dollars in the year 2017. These would all add up amounts that are substantial to the savings on your tax bills.
Exemptions by 2018
By the year 2018, these exemptions have gotten replaced by
A standard of education that’ll increase. A Large tax credit for your kids that would be worth up to two thousand dollars per your dependent kids. There are also additional child tax credits which are all up to a thousand four hundred per qualifying child.
There are also brand new credits for other dependent children. These are all up to five hundred dollars per these qualifying dependents. Make sure you do not confuse this with the dependent care credits and the child.
There are rules which are dependent and they apply to several other benefits too.
These include things like Earned Income Tax credit and then the Dependent Child Care credit for expenses related to daycare. These include itemized expenses and medical deductions for several different credits that involve kids or family issues.
These benefits could spell the differences between receiving a refund and owing money.
Who can get qualified as a dependent?
From the rules gotten from the IRS, these qualify dependents to cover about every conceivable situation from housekeepers to offsprings that are emancipated.
Happily, most of us enjoy living lives that are simple. There are rules which would cover just about everyone.
There are two different types of dependents. These subjects have rules that are different. These could be a relative that qualifies and a child that qualifies.
For both of these dependents, you need to have proper answers to the questions which would be asked to know if you could claim them properly. These questions include:
Knowing their full names, knowing when they gave birth to them, knowing who gave birth to them. Proving you are their actual guardian or parent or relative. You need to prove you need these taxes which would get reduced from you since you already have a dependent. In the end, it is quite a simple thing but you need to make sure you need to get these dependent tax funds and you would take very good care of the dependent. No one would give funds to someone that wouldn’t take care of a dependent.