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As you gather your records to complete your tax filing for 2011, you may be among the nearly 55% of all taxpayers who will declare a child as a dependent. Many children today have grandparents, uncles and aunts, step-parents and adoptive parents who are their primary caregiver and who may claim them as a dependent for a bit of tax relief.
But there are a number of things to consider before making the claim.
This is especially important if a child splits their time living with parents in different locations. For you to claim a child on your tax records as a dependent, the IRS requires that child and you to qualify in five key areas called “tests”.
The 5 tests for a Qualifying Child that you must consider are:
- Relationship
- Age
- Residency
- Support
- Joint return
But things aren’t as simple as 1-2-3-4-5. Even the age of the child that you can claim has a few twists. For example, a child living with you who is under the age of 19 at the end of the year, that is, December 31st, can be claimed as a dependent as long as you have determined that the child is related to you, a permanent resident, receiving primary care from you and/or is not being claimed by someone else on a separate return. Whew! If they are a full-time student they may be claimed if they are under the age of 24, but there are particular qualifications that must be met regarding the kind of education the child is enrolled in.
Having a CPA on your side to consider all the information is key to making certain you receive the tax relief you qualify for and pay only the taxes you owe. For more information, contact us at McRuer CPAs for a consultation.
