Posted on

Can I Claim the Child Tax Credit 2014?

If you meet the requirements to claim the Child Tax Credit 2014, expect to see a larger tax refund in 2015

If you have a child, you know first hand that being a parent changes your life.

Along with the new responsibility comes the expenses of having a child, such as food, clothing, classes, pictures, day care and so much more. Luckily, the IRS offers a few tax advantages to help with the never ending costs. One in particular is the Child Tax Credit.

Keep in mind however, just because you have a child, it does not automatically qualify you to claim the Child Tax Credit on your 2014 Taxes.

In order to claim the credit on your 2014 Tax Return, you’ll have to meet the 7 IRS Child Tax Credit requirements. 

1. Relationship

In order to claim the child tax credit, the child must be one of the following;

  • your child
  • your stepchild
  • a foster child placed with you by a court or authorized agency
  • an adopted child (even if the adoption is not final by the end of the tax year)
  • your brother
  • your sister
  • your stepbrother
  • your stepsister
  • your niece
  • your nephew Continue reading “Can I Claim the Child Tax Credit 2014?”
Posted on

Are Full-Time Students Exempt from Taxes?

Students are not exempt from taxes and have the same filing requirements as everyone else

Already beleaguered college students will be disappointed to learn that there is not a tax exemption for students, full-time or otherwise.

Whether you have to file a return depends on

  • your income amount (earned and unearned)

  • whether someone else claims you as a dependent

  • your filing status

  • your age

If your level of income is below the filing requirement for your age, filing status, and dependency status, then you don’t have to file a return. Conversely, if your income level is above this filing requirement, you must file regardless of whether you are a student.

You can see the filing requirements for most non-dependent situations below: Continue reading “Are Full-Time Students Exempt from Taxes?”

Posted on

Release of Dependency Exemption – Form 8332

This form can release a child’s dependency exemption to the noncustodial parent

Children can be a great boon to your tax situation, because they often mean a larger refund. But in cases of divorce or separation, children can also make tax returns much more complicated than they would be otherwise.

In these cases, certain decrees or settlements may necessitate the custodial parent signing over the child’s dependency exemption to the noncustodial parent.

In order to do this, you must file Form 8332 [Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent].

Use this form if you are the custodial parent and you want to Continue reading “Release of Dependency Exemption – Form 8332”