Archive for the ‘Children’ Category

Tax Breaks for Grandparents Raising a Grandchild

by P. Lewis Robinson
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Nov
13

1.    Head of household filing status,

2.    Exemption for the child,

3.    Earned income credit (EIC),

4.    Child tax credit (CTC),

5.    Credit for child and dependent care expenses,

6.    Credits or deductions for qualified education expense, and

7.    Deductions for medical and dental expenses.

Head of household filing status

An individual who is considered unmarried and has a qualifying child may be eligible to use head of household as his or her filing status. It generally is more favorable than the single filing status. (more…)

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Six Tips for Students with a Summer Job

by P. Lewis Robinson
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Jul
15

School’s out and many students now have a summer job. Some students may not realize they have to pay taxes on their summer income.  Here are the six things the IRS wants everyone to know about income earned while working a summer job.

  1. All employees fill out a W-4, Employee’s Withholding Allowance Certificate,  when starting a new job. This form is used by employers to determine the amount of tax that will be withheld from your paycheck. If you have multiple summer jobs you will want to make sure all your employers are withholding an adequate amount of taxes to cover your total income tax liability. To make sure your withholding is correct, use the Withholding Calculator on IRS.gov. (more…)
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Summertime Child Care Expenses May Qualify for a Tax Credit

by P. Lewis Robinson
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Jul
13

Did you know that your summer day care expenses may qualify for an income tax credit? Many parents who work or are looking for work must arrange for care of their children under 13 years of age during the school vacation. Those expenses may help you get a credit on next year’s tax return.

Here are five facts the IRS wants you to know about a tax credit available for child care expenses. The Child and Dependent Care Credit is available for expenses incurred during the lazy hazy days of summer and throughout the rest of the year. (more…)

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Tax-Free Employer-Provided Health Coverage Now Available for Children under Age 27

by P. Lewis Robinson
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May
11

WASHINGTON — As a result of changes made by the recently enacted Affordable Care Act, health coverage provided for an employee’s children under 27 years of age is now generally tax-free to the employee, effective March 30, 2010.

The Internal Revenue Service announced today that these changes immediately allow employers with cafeteria plans –– plans that allow employees to choose from a menu of tax-free benefit options and cash or taxable benefits –– to permit employees to begin making pre-tax contributions to pay for this expanded benefit.

IRS Notice 2010-38 explains these changes and pro (more…)

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Tax-Free Employer-Provided Health Coverage Now Available for Children under Age 27

by P. Lewis Robinson
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Apr
27

WASHINGTON — As a result of changes made by the recently enacted Affordable Care Act, health coverage provided for an employee’s children under 27 years of age is now generally tax-free to the employee, effective March 30, 2010.

The Internal Revenue Service announced today that these changes immediately allow employers with cafeteria plans –– plans that allow employees to choose from a menu of tax-free benefit options and cash or taxable benefits –– to permit employees to begin making pre-tax contributions to pay for this expanded benefit. (more…)

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Top Ten Facts About the Child and Dependent Care Credit

by P. Lewis Robinson
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Mar
8

Did you pay someone to care for a child, spouse, or dependent last year? If so, you may be able to claim the Child and Dependent Care Credit on your federal income tax return. Below are the top 10 things the IRS wants you to know about claiming a credit for child and dependent care expenses.

1.     The care must have been provided for one or more qualifying persons. A qualifying person is your dependent child age 12 or younger when the care was provided. Additionally, your spouse and certain other individuals who are physically or mentally incapable of self-care may also be qualifying persons. You must identify each qualifying person on your tax return. (more…)

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Ten Facts about Claiming the Child Tax Credit

by P. Lewis Robinson
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Mar
5

The Child Tax Credit is a valuable credit that can significantly reduce your tax liability. Here are 10 important facts from the IRS about this credit and how it may benefit your family.

1.     Amount - With the Child Tax Credit, you may be able to reduce your federal income tax by up to $1,000 for each qualifying child under the age of 17. (more…)

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Four Facts Every Parent Should Know about Their Child’s Investment Income

by P. Lewis Robinson
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Feb
25

The IRS wants parents to be aware of the tax rules that affect their children’s investment income. The following four facts will help parents determine whether their child’s investment income will be taxed at the parents’ rate or the child’s rate. (more…)

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Ten Tax Topics for Taxpayers with Tots & Teens

by P. Lewis Robinson
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Jan
13

 Got Kids? They may have an impact on your tax situation. Listed below are the top 10 things the IRS wants you to consider if you have children.

  1. Dependents In most cases, a child can be claimed as a dependent in the year they were born. For more information see IRS Publication 501, Exemptions, Standard Deduction, and Filing Information.
  2. Child Tax Credit You may be able to take this credit on your tax return for each of your children under age 17. If you do not benefit from the full amount of the Child Tax Credit, you may be eligible for the Additional Child Tax Credit. The Additional Child Tax Credit is a refundable credit and may give you a refund even if you do not owe any tax. For more information see IRS Publication 972, Child Tax Credit. (more…)
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3/10/08 – Kiddie Tax

by P. Lewis Robinson
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Dec
9

Kiddie Tax Age Limit Expanded

Starting in 2008, the “kiddie tax” is extended to children who are age 18 or who are full-time students age 19-23, unless the child’s earned income exceeds 50% of his or her support.
 
From J.K. Lasser’s Your Income Tax 2008.
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