That seems to be the question for the past week at H and R Block. If there is a person living with you and they....then are they a dependent or not?
Believe it or not, they are not ALWAYS a dependent. In fact, your very own child who is a minor is not guaranteed to be a dependent for tax purposes!
I also learned, don't ever get divorced, but if you do--make sure you have it written in the paper work that you have the child for tax purposes or more then 1/2 the year, otherwise you lose all kinds of tax credits.
Someone who is not related to you can be considered a relative for tax purposes!
This country has some weird tax laws! :)
7 comments:
Wow...such interesting information!
1. I did know that not everyone that lives you can be claimed as a dependent.
2. I did get divorced...and well the only thing I didn't get screwed on...IS the tax deductions! (except when he claims them and he isn't supposed to do so...then I have to prove him in error!!)
I guess I learned by osmosis while working in the Financial Investment Services industry! :) Who knew it would be so tied to taxation laws? Anything to do with money...there IS a tax for it!
Believe it or not, you can make money and not get taxed on it too!
A couple examples:
Life Insurance you recieve and (You should know this jadee---
Child Support!
There are actually others too! :)
WELL....Child support for me doesn't quite count as income...because each of my boys eat more than $50/week...which is $7 more than I DO RECEIVE per month!!! :$
I used to hate the whole taxation process. Now more of the quirks in tax law benefits us rather than harms us.
I remember learning about dependents in my Tax Accounting class at Evangel. That's when I knew I didn't want to do peoples taxes. Doing someone's taxes is basically problem solving. I am not a problem solver. Do they or don't they, can they or can't they, maybe they should do this, maybe they should do that. I have enough problems of my own!
It depends...
I hate taxes. They are where headaches come from.
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