Children Archives - John R. Dundon II, Enrolled Agent

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Children

08 Feb What is a ‘Qualifying Relative’ for US Tax Purposes: IRC 152

Posted at 00:00h in Adoption, Child Tax, Children, Earned Income Tax Credit, IRS Enforcement, Tax Credit, Tax Deductible Expenses, Tax Filing Status, Tax Guidance & Preparation, Tax Problems & Requests

Wading through the convolution required to identify specifically who qualifies as a relative for income tax reporting purposes oftentimes can be difficult, not because the actual tax code is difficult to understand in these regards or even subject to much interpretation. No, it is difficult...

27 Dec 2014 Tax Fears & Advice

Posted at 00:00h in Capital Gain, Capital Loss, Child Tax, Children, Depreciation, Education Expense, Health Care Tax Credit, IRS Audit, IRS Collections, IRS Enforcement, IRS Examination, IRS Mediation, IRS Penalties, Marriage, Paying Taxes, Social Security, Social Security Tax, Tax Guidance & Preparation, Tax Preparer, Tax Problems & Requests, Tax Relief, Taxpayer Advocate, Uncertain Tax Position

With my family snugly content midst a long holiday season I felt compelled to pen some thoughts regarding the ubiquitous US Tax Code and all its myriad of seemingly scary changes looming around the proverbial corner. This post lists 10 tax matters to be aware...

02 Jan The ‘Fiscal Cliff’ and Your Tax Obligations

Posted at 00:00h in Capital Gain, Charitable Contribution, Children, Earned Income Tax Credit, Education Expense, Estate Tax, Paying Taxes, Payroll Tax Problems, Self Employ, Small Business, Social Security Tax, Tax Filing Status, Tax Guidance & Preparation, Tax Preparer, Tax Problems & Requests, Tax Relief, Taxable Income

Our esteemed President has proven to me to be extraordinarily disingenuous with his statements about the middle class and their purported tax obligations as pretty much everyone's taxes will go up in 2013 as a direct result of the cumulative efforts of our 'elected officials'...

27 Sep IRS Publication 503 – Dependent Care Expenses

Posted at 00:00h in Children, Dependent, Disallowed Expenses, Husband/Wife, Tax Guidance & Preparation, Tax Problems & Requests, Taxable Income, Unemployment

A taxpayer came to me today for verification on dependent care expenses. Their basic profile may be similar to yours. A husband and wife with two children in day care. The wife is a full time student that does not work outside of the house....

The Perturbing New Treatment of Patents Under the Tax Cut & Jobs Act (TCJA)

21 Aug How to Report Your Child’s Investment Income

Posted at 00:00h in Child Tax, Children

If your minor child has been blessed with the opportunity to be endowed with income producing investments be wary as I have witnessed this can indeed become a curse for you on many levels. As if parenting isn't hard enough it seems to only be...

Business Entity Selection and the Tax Consequences of Converting

09 Jul The 5 Tax Benefits of Procreating

Posted at 00:00h in Child Tax, Children

Generally the five tax benefits of having children are the: dependency exemption, child tax credit, earned income credit (EIC), child and dependent care credit and head of household filing status. These benefits can be split only when the parents are separated under a divorce or separation...

28 Jun IRS Form 8863 + Publication 970 – Hope and Lifetime Learning Credits

Posted at 00:00h in Children, Education Expense, Tax Credit

According to IRS Publication 970 the modified version of the Hope Credit is now referred to as the American Opportunity Tax Credit (AOTC) and extended through 2012. The AOTC is available for the first four years of post-secondary education. It has been expanded so that qualified tuition and related expenses now...

20 Jun Dependent Care Credit IRC 21

Posted at 00:00h in Child Tax, Children, Deductible Expense, Dependent, Employment Tax, Tax Credit

According to Internal Revenue Code Section 21, the maximum tax credit as of this posting date remains at $1,050 (35% of $3,000) for one qualifying individual and $2,100 (35% of $6,000) for two or more. This credit is for expenses paid for the care of your qualifying children...

25 Apr What is a Qualifying Child for the Child Tax Credit – IRS Publication 972

Posted at 00:00h in Child Tax, Children, Tax Credit

A qualifying child for the child tax credit is someone who meets the qualifying criteria of seven tests: age, relationship, support, dependent, joint return, citizenship and residence. 1. Age test To qualify, a child must have been under age 17 – age 16 or younger – at...

12 Apr Tax Advantages of Employing Your Children

Posted at 00:00h in Children, Employment Tax

Payments for the services of a child under the age of twenty-one who works for his or her parent whether or not in a trade or business, are not subject to federal unemployment taxes (FUTA). These exceptions are not the case with a corporation (C or S), even if the...