The details of filing a tax return can be extremely complicated. From potential deductions to credits and the ever changing tax laws, knowing what exactly an individual can claim and precisely how to file is far too often like learning a foreign language. However, instead of a mistake resulting in perhaps asking for a soda instead of water, tax failures can result in fines, penalty and interest payments, or worse - prison.
While obviously an extreme measure, jail time is a potential consequence and especially so for those who fail to file their income taxes
. Fortunately, there is help available but understanding the intricacies of a return can be problematic. One such detail involves dependents, exactly who qualifies, and the result of claiming certain individuals.
Many individuals are familiar with parents claiming their own children as dependents but the connection doesn’t have to necessarily be blood related. Foster children, step children, and even in-laws may sometimes be eligible. Other related groupings, including siblings, etc. may also qualify.
A dependent also doesn’t necessarily have to be younger than the individual or couple filing. While this is the case with which most are familiar, people sometimes also claim older siblings, relatives, or parents as dependents.
A child being claimed as a dependent must have lived with the individual filing for a majority of the year being reported. For example, if filing for 2020, then that is the subject year for this determination.
In order to be a dependent, then the taxpayer must have provided a majority of the support necessary for this individual to live. If the dependent is also earning income, then it typically is lower, indicating a need to rely on someone else. Similar to residency, over half of their support must have come from the filing individual or couple on the return for which they are claimed.
So many different scenarios and situations exist revolving around dependents that the IRS also created an online tool
If you’re ready to file a return and need help determining if dependents may result in credits and/or deductions applying to your given situation, then let the tax professionals at Bloch Rothman and Associates
assist you today. In addition to providing answers to your dependent questions, they can also take care of multiple other issues dealing with paying or owing back taxes, required audits signaled by either the IRS or an outside agency, or any other personal or corporate wealth management issues. Along with providing a quality tax service, our group can also complete all types of returns or answer any other factors associated with financial issues or concerns you may have. Serving Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service.
If you have questions about your personal, business, estate, or any other filings, don’t hesitate to contact us
today. Available for all of your tax needs, there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and providing the type of service you can rely on whatever your needs may be very soon!