Tag: dependents

Do College Students Need to File Their Own Tax Return?

Written by Paul Belfiore on May 31, 2024. Posted in Blog, Taxes.

Family in Hollis, NH Has Questions About Their Future College Student

If a single college student made more than $13,850 throughout the year or had an employer withhold taxes from their paycheck, they should file their own tax return. If their unearned income, including interest, dividends, unemployment compensation, and income as a beneficiary of a retirement plan, exceeds $1,250 for the year a tax return must be filed. If the college student is self-employed with an annual income of $400 or more, a tax return would also need to be submitted at the end of the year reporting this income.

Tax Breaks Available for Caregivers Caring for Elderly Parents

Written by Paul Belfiore on November 17, 2023. Posted in Blog, Taxes.

Amherst, NH Resident Seeks Information

If you are the caregiver for your elderly parent, you may be eligible for tax deductions. The first tax credit that you may be able to utilize is the child and dependent care tax credit. If you are paying for care for your elderly parent while you are working, these expenses may be eligible. You can claim up to $3,000 for one person or $6,000 for two. A second tax credit is available for other dependents, with up to $500 in tax credits. To be eligible for this the parent must be a US citizen with a gross income that is not greater than $4,400 and have lived with you more than 50% of the year.

Is My Child’s Summer Camp and Daycare Tax-Deductible?

Written by Paul Belfiore on August 11, 2022. Posted in Blog, Taxes.

Milford, NH Resident Seeks Answers

Summer camp and daycare is tax deductible for children under age 13 or if the child is a disabled dependent. The tax credit may cover up to $3,000 in qualifying expenses for one child or up to $6,000 for two or more children. This includes money paid to a daycare center, babysitter, summer camp, or other provider offering childcare. Covered under the Child and Dependent Care Credit, this was created for working parents to offset the price for childcare. However, parents who are full-time students and those that are unemployed and actively looking for work may also qualify for this deduction

What Are the Rules for Claiming a Dependent on Your Tax Return?

Written by Paul Belfiore on July 28, 2022. Posted in Blog, Taxes.

Brookline, NH Resident Seeks Advice

There are tax deductions for those that have dependents living full-time in their household, the most common of which is the Child Tax Credit and Child and Dependent Care Credit. To qualify as a dependent, this can be a child that is under age 19 or under 24 if they are a full-time student. If the child is permanently disabled, you can qualify for these deductions regardless of age. Caring for aging relatives that are living in your home may also qualify for a tax deduction as a dependent if you are financially supporting them.

How Does Divorce Affect Your Tax Filing?

Written by Paul Belfiore on March 26, 2021. Posted in Taxes.

Hudson, NH Divorcee Seeks a Better Understanding

The IRS does not consider a separation when it comes to filing your taxes. Only if a legal divorce decree occurs during the calendar year will it affect your taxes. If the divorce is finalized by December 31^st, the IRS will consider you divorced for the entire calendar year for tax purposes. The biggest change is that you can no longer file your taxes jointly, but must file as single or head of household. Any children can only be deducted on the taxes of one parent, which is often the custodial parent.