Avoiding IRS Tax Debt Don't Depend On Those Kids As Dependents
Avoiding IRS Tax Debt Don't Depend On Those Kids As Dependents
What is the most common cause of the tax liability?
One of the most common reasons for a tax liability of people claim dependent children for the Earned Income Credit. Most are people with lower incomes who are just looking for a little more to get by. Many of these people bad advice from friends, family, or tax preparation business. Or they are people who cared for a child who does not belong to them, but was a friend or a child by relatives. Also known as IRSAgent I felt bad for these people. But she made the mistake of listening to bad advice.
If it's too good to be true
This small miscalculation can lead to a tax debt of several thousand dollars that you can not afford. If the application make sure your taxes if you can make a child tax credit claims. We're always watching Earned Income Credit exposures during my time with the IRS because they easily earned money. Do the research to make sure you know the requirementsand see if you actually get that tax credit.
Here is a brief list of requirements for the Earned Income Credit that will soon be helpful to find out whether or not you can qualify.
If you are married, living together, and the child is the biological offspring of both parents then there should be no problem with receiving earned income credit.
In order to maintain a child, the child must be the relationship of age to meet, and the residenceTests.
1st connections: son, daughter, stepchild, eligible foster child or a descendant of one of them (for example, your grandchild) or Brother, sister, half brother, half sister, stepbrother, stepsister or a descendant of one of them (for For example, your niece or nephew).
2nd Age: The child must be under the age of 19 or under the age of 26 and a full-time student or permanently and totally disabled regardless of age.
3rd Residency: The child musthave in your care for at least six months of the fiscal year.
Only one person can claim the child.
If your situation does not meet these basic requirements then claim a child for the Earned Income Credit would be only a liability for the result.
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