If you have a family, not only is your life enriched by your children, but you can get some help during tax season. If you have dependents that you can claim on your taxes, it can end up saving you thousands of dollars each year. When it comes to dependents, that doesn’t just mean those cute little kids that belong to you either. It can include elderly family members living with you and more. Mark Dicus & Company is here to talk about some of the rules that you must follow when it comes to claiming dependents on your taxes.
Benefits of Claiming Dependents
At tax season, you may want all the help you can get to help save money and keep it in your pocket. The difference between claiming dependents and not is a matter of owing money in April or getting a bit of a refund. Some of the tax credits you can take advantage of include:
– Child Tax Credit
– Additional Child Tax Credit
– Child & Dependent Care Credit
Rules Regarding Claiming Dependents
There are several different qualifications that you need to follow when it comes to claiming dependents. It can all be confusing if you don’t know what you’re doing. To simplify things, here are a few rules that you must follow when claiming dependents.
– The dependent child must be a part of your immediate family. If they aren’t an immediate family member, they must be the descendent of your immediate family.
– A dependent relative that isn’t part of your family must live with you as part of your family throughout a tax year.
– The age of the dependent matters when your child isn’t disabled. You can claim children under the age of 19 whether they are a student or not. If your child is a student, you can claim them up to 24 years old. If you have a child that is disabled, they can qualify as your dependent regardless of their age. Another situation that doesn’t depend on the age of the dependent is a dependent relative that isn’t your child.
– There are times that a qualifying dependent doesn’t have to live with you. If your dependent is attending college or a child that wasn’t born until later in the year. The only time a qualifying dependent that isn’t you child doesn’t have to live with you is when if they are an immediate member of your family like your brother or sister.
– You must provide a majority of the dependent’s support. You have to cover more than 50% of their support to claim them.
– No one else can claim them as a dependent.