November 17th, 2015
TAX TIP OF THE DAY...
Generally, deduct your children as long as possible. Just because a child gets a job does not automatically mean that you can no longer claim them as your dependent. This is the most frequent error that I see on tax returns... because the parent wants to be "nice" to the child. This generosity often saves the child a few hundred dollars, but can cost the parent thousands of dollars because of their higher tax bracket. The decision must be weighed out very carefully. Both tax returns should be looked at to make the best decision.
The law... Children can be declared dependents until age 19 if they're not in school, 24 if they are and at any age if they're permanently disabled. Additonal factors are the amount of child earnings and self-support.
SHARE WITH A FRIEND. If you need any help... www.baboiancpa.com
Comments are closed.
David S. Baboian, CPA