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Education for Justice |
FACT SHEET T-6 |
for tax year 2010 |
CAN I CLAIM A CHILD ON MY
TAX RETURN?
Claiming a child on your tax return can lower your
taxes and raise your refund. You can claim a “qualifying child” or “qualifying
relative” as dependent. A “qualifying child” can also be claimed for the EITC
(Earned Income Tax Credit). There are 3 ways that claiming a child can help on your taxes.
·
A child can be your dependent and give you a “deduction.” This is
subtracted from your income before your
taxes are figured. Lower income means less tax.
·
It can put you in a different filing status so you pay a lower tax.
·
You can get the child tax credit, and if you meet the rules, you can
get the EITC.
There are rules about whether you can claim a child
for taxes. You must follow the rules. If you don’t,
you can lose the right to file for EITC in the future, or you may have to pay
refund money back to the state or the IRS or pay more taxes and other
penalties. Some of these things are complicated. You can get free help with
your taxes if you have a low-income or are a senior citizen or disabled. To
find help near you, call (651) 297-3724 or First Call for Help statewide at
211, (or (651) 291-0211 from a cell phone). First Call for Help can also help you get
information in your native language.
CLAIMING SOMEONE ELSE ON YOUR TAX RETURN
The definitions have changed about who you can claim.
There is a “qualifying child” and a “qualifying relative.”
Qualifying Child
·
The child must be the taxpayer’s child, stepchild, eligible foster
child, brother, sister, stepbrother, stepsister or a descendent of one of these relatives. This includes a child placed with
the taxpayer for adoption, even if the adoption is not final. An eligible
foster child is any child placed with the taxpayer by an authorized placement
agency or court.
·
The child
must live with the taxpayer for more
than 6 months of the year in the
·
The child must be younger than the taxpayer unless they are permanently
and totally disabled. There are
different age limits for the various credits:
−
Credit for Child and Dependent Care Expenses – the child must be under age 13 when the care was provided or any age if the child
is disabled and not able to take care of themselves.
−
Child Tax Credit – child must be
under age 17 on December 31, 2010.
−
Dependency Exemption, Head of Household filing status, and Earned
Income Tax Credit (EITC) – the child must be under age 19 or a full-time student under age 24 on December 31, 2010, or any age if permanently
and totally disabled.
·
The child cannot have
provided over half of his or her own support during the year. Social Security benefits received for a child as the
beneficiary of a deceased or disabled parent are included in the child’s
income. The support test does not apply when determining if the taxpayer has a
qualifying child for the EITC.
·
If the child can be claimed by a parent as a
qualifying child, but neither parent claims the child NO ONE ELSE can claim the
child unless their Adjusted Gross Income is higher than the AGI of either
parent. This situation can happen when
extended family lives together.
·
If a child is a qualifying child for more than one taxpayer, and they
can’t agree on who will claim the child, the parent who lived with the child longest that year should
claim the credit. If the child lived with both parents for the same length of time, the parent
with the higher income should claim the
credit.
If the
child:
1.
did not live with
any parent,
2.
is a qualifying
child of more than one taxpayer, and
3. the taxpayers can’t agree who
should claim the child,
then the taxpayer with the highest income will get the
credit.
Qualifying
Relative
A
qualifying relative is someone who is:
·
a U.S.
Citizen or lived in the
·
a member of your
household for the whole year, or a family member who may or may not live with
you like:
- your child, grandchild,
great grandchild, stepchild,
- your brother, sister, half brother, half sister,
stepbrother, stepsister,
- your
parent, grandparent, stepparent, - your
aunt or uncle, niece or nephew,
- your father-in-law,
mother-in-law, son-in-law, daughter-in-law,
- brother-in-law,
or sister-in-law.
The child or person usually cannot be your dependent if:
·
They are
married and file joint taxes with their spouse.
·
They earn more
than $3,650 during 2010. But, if the
person is your child under age 19 or a student under 24, they can still be your
dependent and earn more than $3,650.
The rules above are for federal
taxes.
CAN I GET THE EITC?
The EITC is a tax credit for people who work. The
maximum credit is $5,666. Single and
married people can get it. You don’t have to have children, but the credit is
higher if you do. These are rules about which children qualify. See below. If
you break these rules, you can be denied the EITC for up to 10 years.
You must
have worked during 2010. You can’t get EITC if you earned money outside the
U.S.
Your
earnings and the “adjusted gross income” on your tax form must be less than:
·
$43,352 if you have 3 or more qualifying
children
(or
$48,362 if married and filing a joint return)
·
$40,363 if you have 2 or more qualifying
children
(or $45,373 if married and filing a joint return)
· $35,535 if you have one qualifying child
(or $40,545 if married and filing a joint return)
· $13,460 if you have no qualifying children
(or $18,470 if married and filing a joint return)
DO I
MEET THE EITC RULES?
·
You must be a
U.S. citizen or resident alien for all of 2010.
·
You need a
valid social security number for you,
your spouse, and children you claim.
·
Your filing
status can’t be “married filing separate.”
·
Your
investment income must be less than $3,100.
·
You can’t
claim the EITC if someone else can claim you as a “qualifying child.”
CAN
I CLAIM A CHILD FOR EITC?
Yes, if that
child meets the definition of “qualifying child” on the first page of this fact
sheet. A “qualifying relative” cannot be claimed for the EITC.
WHAT
IS AN EXEMPTION?
Exemptions
(like deductions) reduce your taxable income. For 2010, taxpayers get a $3,650 exemption for themselves and their spouse
(if filing jointly), and $3,650 exemption for each qualifying child or
qualifying relative they claim.
This
fact sheet applies only to tax year 2010.
Income tax returns must be filed by April 18th, 2011.
ARE
THERE OTHER CREDITS I CAN GET?
You may be able to get:
·
Child Tax
Credit
·
Child and
Dependent Care Credit
·
Working
Family Tax Credit
·
K-12
Education Credit
Ask the person who does your taxes about these.
To find other Legal
Aid Society materials, including any fact sheets mentioned in this
document, go to www.lawhelpmn.org/LASMfactsheets.
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Legal Assistance. This document may be
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