Question 1

Is there an age limit on claiming my children as dependents?

Accepted Answer

Age is a factor in the qualifying child test, but a qualifying relative can be any age. As long as the following dependency exemption tests are met, you may claim him or her:
 
1. Qualifying child or qualifying relative test
2. Dependent taxpayer test
3. Citizenship or resident test
4. Joint return test

Question 2

How much does an unmarried dependent student have to make before he or she has to file an income tax return?

Accepted Answer

If you are an unmarried dependent, you must file a tax return if your earned and/or unearned income exceeds certain limits.
 
Even if you do not have to file, you should file a federal income tax return to get money back if any of the following apply:

1. You had income tax withheld from your pay.
2. You qualify for the earned income credit.
3. You qualify for the additional child tax credit.

Question 3

If I claim my daughter as a dependent because she is a full-time college student, can she claim herself as a dependent when she files her return?"

Accepted Answer

If you claim your daughter as a dependent on your income tax return, she cannot claim herself on her income tax return.
 
• If an individual is filing his or her own tax return, and the individual can be claimed as a dependent on someone else’s return, the individual cannot claim his or her own personal exemption.

• In this case, your daughter should check the box on her return indicating that someone else can claim her as a dependent.

Question 4

What should I do if I made a mistake on my federal return that I have already filed?

Accepted Answer

It depends on the type of mistake that you made:

• Many mathematical errors are caught in the processing of the tax return itself.
• If you did not attach a required schedule, the IRS will contact you and ask for the missing information.
• If you did not report all your income or did not claim a credit, you should file an amended or corrected return using Form 1040X, Amended U.S. Individual Income Tax Return.
When filing an amended or corrected return:
• Include copies of any schedules that have been changed or any Form W-2 (PDF) you did not include.
• Generally, to claim a refund, the Form 1040X (PDF) must be received within three years after the date you filed your original return or within two years after the date you paid the tax, whichever is later.
• Please allow the IRS 8-12 weeks to process an amended return.

Question 5

How do I know if I have to file quarterly individual estimated tax payments?

Accepted Answer

You must make estimated tax payments for the current tax year if both of the following apply:

• You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.
• You expect your withholding and credits to be less than the smaller of:
o 90% of the tax to be shown on your current year’s tax return, or
o 100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.)
 
There are special rules for:

• Certain small business taxpayers for periods beginning 2009
• Certain taxpayers with higher adjusted gross income
• Farmers and commercial fishermen
• Aliens
• Estates and Trusts

Question 6

My wife and I are married filing separately. We have one son and we meet all of the dependency exemption tests. We contributed an equal amount to our son's support and want to know if we both can claim him on our separate returns?

Accepted Answer

A dependency exemption may only be claimed on one return.
 
• Since your son is a qualifying child for both of you, you and your wife can decide who will claim the child.
• A multiple support declaration identifying each of the others who agreed not to claim the exemption must be attached to the return of the person claiming the exemption. Form 2120, Multiple Support Declaration, can be used for this purpose.
• If you cannot agree on who will claim him refer to Tie-Breaker Rule in Publication 501, Exemptions, Standard Deduction, and Filling Information.

Question 7

If you pay child support, are you allowed to deduct anything on your taxes or claim the child as an exemption?"

Accepted Answer

Nothing can be deducted for the child support payments.
 
• Child support payments are neither deductible by the payer nor taxable income to the payee.
You may be able to claim the child as a dependent.
• The parent who the child lived with for the greater part of the year is the custodial parent.
• Generally the custodial parent is allowed to claim the exemption for the child if the other exemption tests are met.
• The noncustodial parent may be allowed to claim the exemption for the child if the custodial parent signs a Form 8332 (PDF), Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent of Divorced of Separated Parents, or a substantially similar statement.

Question 8

I donated a used car to a qualified charity. I itemize my deductions, and I would like to take a charitable contribution for the donation. Do I need to attach any special forms to my return? What records do I need to keep?"

Accepted Answer

If you claim a deduction of at least $250 but not more than $500 for the car donation, you will need only a written acknowlegment from the charity at the time of the donation. The acknowledgment must include the name of the charity, a description of the care, and a statement of whether the charity provided any goods or services in return for the car and, if so, a description and estimate of the fair market value of the goods and services. Do not attach the acknowledgment to your return: instead, retain it with your records to substantiate your donation.
 
If you claim a deduction of more than $500 for the car donation, you will need the following:

• Copy B of Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes. Attach this form to your tax return.
• Section A of Form 8283, Noncash Charitable Contributions. Complete Section A only if you claim a deduction of $5,000. Attach this form to your tax return.
• A written acknowledgment form the charity that includes your name and taxpayer identification number, the vehicle identification number, the donation date, and a statement of whether the charity provided any goods or services in return for the car and, if so, a description and estimate of the fair market value of the goods or services. Attach this acknowledgment to your return.
• You will need to obtain and keep evidence of your car donation and be able to substantiate the fair market value of the car.
If you claim a deduction of more than $5,000 for the car donation, in addition to the items listed above for deductions of more than $500, you will also need the following:
• Section B of Form 8283 You should complete Section B, which generally requires an appraisal by a qualified appraiser, instead of Section A, and attach the form to your return.
• A written acknowledgment by a qualified appraiser. Do not attach the appraisal to your tax return; instead, keep it with your records to substantiate your donation.

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