I know this video is as long as your high school math class so here are time stamps: ⌚ Time Stamps so you can jump to any point in the video ►0:00 - 1:20 Intro and discussion of free handout ►1:21 IRS Publication 501 ►2:03 Instances when you CANNOT claim a dependent. ►2:51 Tests to claiming a qualifying relative. ►4:30 - 7:13 Test#1 To claim qualifying relative THEY CANNOT BE A QUALIFYING CHILD ►7:14 - 9:32 Test# 2 Member of household or relationship test ►9:33 - 11:31 Test #3 Gross Income Test ►11:32 - 14:45 Test #4 Support test. ►14:46 information in the free handout.
Hello. I always see your videos first. I am doing second year of Accounting. I want to be a CPA. Later I want to open my own business in public accounting, so basically like hotel accounts or any business accounts. I want to manage financial activities for business hotels( hospitality)accounts and activities. Which field I should go? Is it Public accounting? From when I should start doing internship? I hope you response to me. Thank you.
My sister who lives with me and wife is Totally disabled but she does receive $850 in SSDI ,if I count all support we pay more than half of there support. Most of her medical Bill's are free but house bills increase and things not covered like extra chucks, diapers ,cost of taking to medical appointments, wheelchair lift,gas. And much more.anyway I guess can't claim her because she gets the SSDI money. Oh and yes I take extra precautions during covid made her a special room with vitalation and stair lift in basement. Thanks for video, I can show to her, we were hoping to get $500 for NON essential TV for her. I just switch my flat screen with her TV. Sorry I got off subject.
Hi Dave, sounds like you support her. If SSDI is her only income then I suspect none would be taxable. Thus, if that is the case, then you should be able to claim her unless there are other details I'm missing.
Hello Mike thanks for helping us with our taxes. Just wanted to know if you are a professional tax consultant? I’m looking for a tax consultant to do my taxes I live in the So Cal area.
Hi Easyrider, thanks for reaching out. I'm not quite setup to run my own practice just yet, but I'm moving towards it. I work at a firm in the Central valley of California, but I wouldn't suggest going there unless your tax situation is somewhat complicated. Our minimum tax return is $800 - $1,000. Basically I only get to help out the upper middle class and rich. Doing RUclips gives me a chance to help everyone which is one of the reasons I enjoy making these educational videos.
Free handout can be found here: www.dropbox.com/scl/fi/rtmdtjzkm500seuy4uciw/Claiming-dependents-handout.docx?dl=0&rlkey=wvjtyw5d7iu9lgfmidu1co3ak Claiming a dependent on taxes. In this video we discuss in detail how to claim a relative or other dependent. This is how to claim someone who doesn't live with you. Qualifying relative rules fully explained in this video. If you can can claim a relative or "Other dependent" you can receive up a $500 tax credit.***Please note this video is produced for educational purposes ONLY and not to be taken as legal or tax advice. I do my best to insure the accuracy of these presentations, but mistakes can be made so carefully read the forms, or consult with a professional in the area you live if you need tax assistance.***
Another Great Video which is very helpful _ Mike I have two questions _ The Earned Income Tax credit provides Credits for singles who earn less than $15822. a cousin earned less than $15820 but her income exceeded this amount when her unemployment benefit was added, same thing with Saver's credit whose limit is $19500 but again her income is a bit higher than $ 19500 when unemployment benefit was added _ Will she miss out on both credits?? Thanks much in advance!
Hi Zmack, without preparing her taxes I wouldn't know for sure, however, unemployment compensation is usually taxable so I'm afraid she may not receive the credit or the amount of the credit she receives would be reduced.
Hi Mike, I have a question regarding the qualifying relative to claim HOH filing status. Can I claim my mother who does not have any income and lives in Mexico with my sister? My sister is not a US taxpayer and supports
Great video!! I had a question. I am single, no children. However, on the old W4 form. I would claim one. Claiming myself as a dependent. Is that applicable, on the current W4? Thank you. Have a great day!!
So, all the years my ex girlfriend lived with me, I could have claimed her ? She didn't work much. Can I go back to amend my taxes ? How many years can I go back ? Would I need her w-2 info a and how can I get that info ? Thank you !
Another good video. I thought about this for a bit. If a person had $4200/year in income and you're trying to claim that person as a dependent, that person's greater of $1100 or $350 plus earned income. So if this $4200 is mostly income from work, it'll be tax free anyway so the entire $500 is a net benefit. But if the $4200 is unearned income like bank interest, $3100 becomes taxable at 10% or $310. $500 - $310 = $190 of net benefit. So depending on the type of income, this $4200 limit may have varying impact on the federal income tax side. Of course, state income tax might also be a factor so this might get a bit tricky to figure out the net benefit.
Money and Life TV to be honest I was shock about what hidden is trying to do with traditional 401k I be waiting for you thoughts about taxes in this issue. You are the second youtuber who tell me that Jajajaja have a blessing day
@@luisahernandezmunoz8332 Yes, Biden's been trying to be sneaky with calling this a "tax credit". A 26% "tax credit" is worth less than a 22% tax deduction in his proposed change for the 401(k) and perhaps other qualified retirement plans.
Hi, a nice a video of yours. Very helpful. I'm just wondering if i can claim my child as dependent. This is the screnario. My kids are already Resident Alien with SSN, they went to other country to live, stay with their mother (NRA) and go to school temporarily for 2 years. They can stay 2 years because of travel documents. My wife doesn't work there. And I'm the providing their needs. My question is can i claim them as qualifying child?thank You. My kids age are 4 and 6 years old.
Hi Richard this might help. This is from the IRS website: In general, you can claim exemptions for individuals who qualify as your dependents. To be your dependent, the individual must be a U.S. citizen, U.S. national, U.S. resident alien, or a resident of Canada or Mexico for some part of the calendar year in which your tax year begins. Children usually are citizens or residents of the same country as their parents. If you were a U.S. citizen when your child was born, your child generally is a U.S. citizen. This is true even if the child's other parent is a nonresident alien, the child was born in a foreign country, and the child lives abroad with the other parent. You must include on your return the Social Security number (SSN) of each dependent for whom you claim an exemption. If your dependent is a nonresident alien who is not eligible to get a Social Security number, you must list the dependent's individual taxpayer identification number (ITIN) instead of an SSN. See Publication 501, Exemptions, Standard Deduction, and Filing Information, for more details. Also, for tax years beginning after December 31, 2017, taxpayers (including aliens and nonresident aliens) cannot claim a personal exemption deduction for themselves, their spouses, or their dependents. I placed a link to the pub here if you need additional information: www.irs.gov/pub/irs-pdf/p501.pdf Off the top of my head it sounds like you can claim them, but please verify with the publication as I am honestly not 100% certain. The fact that they have a social security number is very important which is why I think you can claim them.
Thanks for the videos Mike. I have a question( might make a good video). So my parents are 62-67. There magi is below 39k my mother still works my dad is retired. They have a couple rental properties. My question is about the savers credit.. Couldnt they contribute to a Roth for 2020. Catch the 50% savers credit. Then liquidate the account. Even if you wind up paying the tax plus penalty for the 5 year rule? I'm thinking it would still be a easy gain. Although I would likely prefer holding out 5 years or really 4. Thoughts?
If im not looking at this wrong .it seems to have great implications for older parents. Even if they didn't want to do it . I could do it for them. And after year 1 each year you could put the credit in and another 2k. And receive 100% percent returns on your personal 2k contribution year after year. Or until they stop the program. Looking forward to hearing from u.
Over the course of 10 years reinvesting the credit + an additional 2k. To acquire the next credit. If my math is correct. Assuming a bondlike 3% annual return. The 22,000 dollar investment would grow to 47557. In 10 years. Seems like a total return of 116% basically no risk
My niece wants to claim her parents who are both medically disabled not sure what type of social security they get I know they do not file taxes. Can she claim them if she is the only ones working and they live with her? I’m sure they have over $4300 a month in these benefits
Hi Teresa, if their only income is social security that means none of it will be taxable. Therefore, according to publication 501, and what you describing I think she may be able to claim them. However, the thing that may disqualify her is does she actually provide more than 50% of their support considering they make $4,300 per month? I think that is the item she needs to work out, and to be able to prove if she were ever audited.
Hi mike, can I claim my retired mom (66yrs old) who lives with me even though she’s receiving $1251.50/month ( minus $148/mo Medicare part B premium) SS pension?
Hi Fluffie, is social security her only income? If so none of it would be taxable. For the purposes of social security only the taxable portion is included in the gross receipts test. Therefore, she should would qualify as someone you could claim in that case according to IRS Pub 501. Of course if you claim her she cannot claim herself. Also assuming all the other tests are met. Hope that helps.
@@MoneyandLifeTV thanks mike! Yes, SS is her only income. I was told that I can claim my mom as dependent, but you mention the income must be something like $4000?!? In order to be a dependent. The other bad side is, since her SS income is considered non filer, she did not receive the 2 stimulus checks when I put her as my dependent in 2019. I hope she will get the 3rd stimulus since she need it. Thanks!
Hi Mike. Nice video. Can you please answer my question. If one student is 23 years old full-time student files his tax return and his parents do not claim him dependent on their tax return also parents do not provide any financial support. If he has a W-2 income of $2400 and an Unemployment income of $24000. Can he claim a $600 of second stimulus check on his tax return?
Received reply from Tax Research center 👇👇👇👇👇👇👇👇👇👇👇👇👇 Response The determination of whether this student is a dependent will come down to the support test. If you can show that the daughter provided more than half of her own support from funds NOT including the unemployment compensation, then the daughter will not be a dependent and will qualify for the Recovery Rebate Credit ($1,800 stimulus payments) by filing her own independent return. If you cannot show that the daughter provided more than half of her own support (again not including unemployment compensation), then she will be considered to qualify as a dependent of the mother. In this case, even if the daughter files an independent return, she will not qualify for the the Recovery Rebate Credit. The child muct provide over 1/2 of their support with EARNED income. Unemployment compensation is unearned income. Further, "income" does not count for the Support Test, per se. Money SPENT counts for the support test. That could be from anywhere, including earned income, unearned income, gifts or savings. For the stimulus funds, the key criterion to hone in on is whether a person qualifies to be claimed as a dependent, and not necessarily whether the person was claimed as a dependent. If a person can be claimed as a dependent by another taxpayer (even if that taxpayer does not claim the person), then the person should not be eligible for a stimulus payment. This is true for both 2019 and 2020 returns. You can complete the Recovery Rebate Credit worksheet on page 59 of the 2020 1040 instructions to determine any amounts due. Q. Who is eligible for a stimulus payment under the CARES Act or the CAA of 2021? A. All individuals are eligible for the full stimulus payment credit, except: Anyone who could be claimed as a dependent by another taxpayer. References 2020 1040 Instructions, p. 59 www.irs.gov/pub/irs-pdf/i1040gi.pdf The Consolidated Appropriations Act, 2021 trc.thetaxinstitute.com/the-consolidated-appropriations-act-2021/ Economic Impact Payments 1 & 2 Stimulus: Eligibility Requirements trc.thetaxinstitute.com/articles/2020-economic-impact-payment-stimulus-eligibility/ How is a recovery rebate credit (RRC) due to Covid-19 stimulus legislation reconciled on the return? trc.thetaxinstitute.com/articles/how-is-a-recovery-rebate-credit-rrc-due-to-covid-19-stimulus-legislation-reconciled-on-the-return/ Additional Information, if any
Confidentiality Notice: This transmission is intended only for the use of the individual or entity to whom it is addressed and may contain information that is privileged and confidential. If the reader of this message is not the intended recipient, you are hereby notified that any disclosure, distribution, or copying of this information is strictly prohibited. If you have received this transmission in error, please notify us immediately by submitting a Customer Support message through the Tax Research Center website.
Hi Emy, possibly....is he receiving unemployment or other forms of income? If so she might not be able to claim him. Taxable unemployment compensation would count against the gross income test.
@@MoneyandLifeTV No he’s not receiving any government assistance. My mom pays for everything from his car insurance, cell phone, food everything for over ten years now since he lost his job and became depressed.
📼 Checkout some of our most popular INVESTING and TAX related videos ✅ Earn $100,000 a year in dividends: ruclips.net/video/DWu3oU6dcBs/видео.html ✅ Dividend Investing Pros and Cons: ruclips.net/video/3gmbrO_PUt8/видео.html ✅ Our Dividend Income Year 6: ruclips.net/video/ppwnTGWNcUY/видео.html ✅ Best Investments for each account ruclips.net/video/WjlOmA-xWAU/видео.html ✅ Calculating dividend tax rates: ruclips.net/video/ldZaDdmcWtg/видео.html ✅ Making your dividends qualified!: ruclips.net/video/YmYcxDLzXyY/видео.html ✅ How to save taxes on stocks: ruclips.net/video/_gaJ6jXgGb4/видео.html ✅ Capital Gain Taxes Explained: ruclips.net/video/BCQYorPgDKs/видео.html ✅ New Tax Laws for 2020 Explained: ruclips.net/video/ewhbBCRvIO0/видео.html ✅ Dividend and REIT Taxation: ruclips.net/video/Y0OxeCS3_H4/видео.html ✅ How to fill out the new 2020 W-4 ruclips.net/video/_VPjX0dDTgs/видео.html 🎥 My Complete Investing Playlists can be found here: ► Dividend Investing: shorturl.at/gxBFY ► 401(K) Investing: shorturl.at/fwAW8 ► Investing in the stock market: shorturl.at/iuyEQ
Hi Shawn, you can certainly choose not to claim him, but I would hate to see you lose the tax credit if he is not going to claim himself. If he doesn't earn an income and you provide over 50% of his support he probably cannot claim himself even if he wanted to. Just keep that in mind.
I have a very stubborn mother who is trying to get me to claim my brother as a dependent so that she can get more money off it because she’s married to someone with an ITIN who’s head of the household. He has always claimed him up until now that the stimulus checks were sent , now she wants me to claim him. That’s basically fraud right? Bc the notary who files her taxes has no issue doing it 😐
I have a question: can i claim my mother who is on ssdi ($945.00 monthly) and my brother who received less than $800 on a W2 and less than $9000 in unemployment in 2020 (now that its tax free in 2021 does that not apply?) and grandma who receives 552 pension Plus 330 in social security. They all live with me and I support them.
I have a friend who has been supporting parents in Mexico who were legal US working residents. He Father gets SS only income. There has been some big medical expenses this year she paid for too. Being single she has been hit with considerable taxes too. Is there a possibility she can claim the parents as dependants and or the medical expenses. My understanding of her father's SS income is exempt.
hello guys quick questions i sell stuff on ebay and i profit 9k after all expense i file my tax with a cpa he say i only have to pay back $780...i thought i would be paying more than 780.. so is 780 the correct number to pay back if u make 9k in profit any 1 know?
Hi Kevin, off the top of my head don't know, it depends on your total income and overall tax rate. With Ebay there is potential self employment related tax, plus income taxes. If overall income from all sources is low then your overall all tax rate will be low.
i have a question for you. im traing to do my taxes im from honduras the sistem is asking me if my dependt is a U.S. citizen, resident, national, or a resident of Canada or Mexico?- we are from honduras, i answerd no the sistem say Unfortunately my depent doesn't qualify as your dependent. how can i file this
Taxpayer was 55 years old in 2021 and adjusted gross income was $72,858 in 2021. Dependent (daughter) was 21 years old in 2021 and adjusted gross income was $30,412 ($7,824 wages, $437 pension, $4,691 unemployment). Dependent is a full time college student Tax Form 1098-T was verified. Can taxpayer still claim daughter on his taxes?
Hi Edgar this might help. This is from the IRS website: In general, you can claim exemptions for individuals who qualify as your dependents. To be your dependent, the individual must be a U.S. citizen, U.S. national, U.S. resident alien, or a resident of Canada or Mexico for some part of the calendar year in which your tax year begins. Children usually are citizens or residents of the same country as their parents. If you were a U.S. citizen when your child was born, your child generally is a U.S. citizen. This is true even if the child's other parent is a nonresident alien, the child was born in a foreign country, and the child lives abroad with the other parent. You must include on your return the Social Security number (SSN) of each dependent for whom you claim an exemption. If your dependent is a nonresident alien who is not eligible to get a Social Security number, you must list the dependent's individual taxpayer identification number (ITIN) instead of an SSN. See Publication 501, Exemptions, Standard Deduction, and Filing Information, for more details. Also, for tax years beginning after December 31, 2017, taxpayers (including aliens and nonresident aliens) cannot claim a personal exemption deduction for themselves, their spouses, or their dependents.
Hello, I'm 24 and not working currently or in college anymore (graduated in 2020). Can my parents claim me as a qualifying relative or a qualifying child on their taxes for 2021 tax return?
Hello, I have a question, I was just checking through my cash app and I realized that I sold a stock at $1.67 that I had originally paid $1 for. Cash App sent an email to me & all users saying that anyone who sold a stock for more than what they paid to get it may owe taxes. My parents just filed for taxes on Monday with H&R Block and they claimed my sister and I “credit for other dependents” only since we are 23 and 24 and no longer in school or currently working at this very moment. Will my parents have to amend their taxes not claiming me anymore because I gained $0.67 more than what I paid for the stock? Cash App said they will send a form but idk if they will. Is this bad? Do I have to file? I also received $0.01 each from two companies I had invested $1 & $5 dollars in 2021.:(
Can a child claim their parent as a dependent for 2020 tax year if the parents are undocumented immigrants but they have an ITIN (tax id number), and lived with you in the USA for the past five years i.e. they meet the substantial presence test, and you pay for more than 50% of their expense. Would this parent fall into the category as a U.S. resident alien for IRS tax purposes? Even tho they are technically illegal immigrants according to immigration law?
I claim as dependent a friend and her child I been supporting them my taxes was rejected cause her Social Security number has been used should I take her out as dependent or should I send the form 14039
Hi! Can I and my wife (Always Filling jointly) claim my 18 year old child, even if she earned $850 plus unemployment $5200 for the year 2020, yet she didn't attend any school in 2020? She lived with us all year and we both supported her, all year. And, how? (Head of the Household??) Thanks!
I know this video is as long as your high school math class so here are time stamps:
⌚ Time Stamps so you can jump to any point in the video
►0:00 - 1:20 Intro and discussion of free handout
►1:21 IRS Publication 501
►2:03 Instances when you CANNOT claim a dependent.
►2:51 Tests to claiming a qualifying relative.
►4:30 - 7:13 Test#1 To claim qualifying relative THEY CANNOT BE A QUALIFYING CHILD
►7:14 - 9:32 Test# 2 Member of household or relationship test
►9:33 - 11:31 Test #3 Gross Income Test
►11:32 - 14:45 Test #4 Support test.
►14:46 information in the free handout.
Great video and thanks for taking the time to clarify a lot of the questions for claiming dependents!
My pleasure Sal! They make this stuff confusing as hell, but I imagine it is difficult because each family is different.
Thanks mike, this is so good, I will print all this and have it in handy. 👍 I love they way you explain things without all those irs fancy letters 😂.
LOL thanks Maria. Those fancy IRS letters are a bit too fancy for my small brain which is why I try to explain things in plain English if I can 😉
Good insight on claiming person!
Thank you Susie! That means a lot.
Thanks this was very helpful!
Glad it was helpful Beerguy, thanks!
Hello. I always see your videos first. I am doing second year of Accounting. I want to be a CPA. Later I want to open my own business in public accounting, so basically like hotel accounts or any business accounts. I want to manage financial activities for business hotels( hospitality)accounts and activities. Which field I should go? Is it Public accounting? From when I should start doing internship? I hope you response to me. Thank you.
My sister who lives with me and wife is Totally disabled but she does receive $850 in SSDI ,if I count all support we pay more than half of there support. Most of her medical Bill's are free but house bills increase and things not covered like extra chucks, diapers ,cost of taking to medical appointments, wheelchair lift,gas. And much more.anyway I guess can't claim her because she gets the SSDI money. Oh and yes I take extra precautions during covid made her a special room with vitalation and stair lift in basement. Thanks for video, I can show to her, we were hoping to get $500 for NON essential TV for her. I just switch my flat screen with her TV. Sorry I got off subject.
Hi Dave, sounds like you support her. If SSDI is her only income then I suspect none would be taxable. Thus, if that is the case, then you should be able to claim her unless there are other details I'm missing.
Hello Mike thanks for helping us with our taxes. Just wanted to know if you are a professional tax consultant? I’m looking for a tax consultant to do my taxes I live in the So Cal area.
Hi Easyrider, thanks for reaching out. I'm not quite setup to run my own practice just yet, but I'm moving towards it. I work at a firm in the Central valley of California, but I wouldn't suggest going there unless your tax situation is somewhat complicated. Our minimum tax return is $800 - $1,000. Basically I only get to help out the upper middle class and rich. Doing RUclips gives me a chance to help everyone which is one of the reasons I enjoy making these educational videos.
Nonetheless thanks for thinking of me. I feel honored.
Thank you so much for this video
Free handout can be found here:
www.dropbox.com/scl/fi/rtmdtjzkm500seuy4uciw/Claiming-dependents-handout.docx?dl=0&rlkey=wvjtyw5d7iu9lgfmidu1co3ak
Claiming a dependent on taxes. In this video we discuss in detail how to claim a relative or other dependent. This is how to claim someone who doesn't live with you. Qualifying relative rules fully explained in this video. If you can can claim a relative or "Other dependent" you can receive up a $500 tax credit.***Please note this video is produced for educational purposes ONLY and not to be taken as legal or tax advice. I do my best to insure the accuracy of these presentations, but mistakes can be made so carefully read the forms, or consult with a professional in the area you live if you need tax assistance.***
Another Great Video which is very helpful _ Mike I have two questions _ The Earned Income Tax credit provides Credits for singles who earn less than $15822. a cousin earned less than $15820 but her income exceeded this amount when her unemployment benefit was added, same thing with Saver's credit whose limit is $19500 but again her income is a bit higher than $ 19500 when unemployment benefit was added _ Will she miss out on both credits?? Thanks much in advance!
Hi Zmack, without preparing her taxes I wouldn't know for sure, however, unemployment compensation is usually taxable so I'm afraid she may not receive the credit or the amount of the credit she receives would be reduced.
@@MoneyandLifeTV Thank you Mike _ she will find out when filing but I too am afraid as another accountant suggested the same.
Hi Mike, I have a question regarding the qualifying relative to claim HOH filing status. Can I claim my mother who does not have any income and lives in Mexico with my sister? My sister is not a US taxpayer and supports
Great video!!
I had a question. I am single, no children. However, on the old W4 form. I would claim one. Claiming myself as a dependent. Is that applicable, on the current W4?
Thank you.
Have a great day!!
So, all the years my ex girlfriend lived with me, I could have claimed her ? She didn't work much. Can I go back to amend my taxes ? How many years can I go back ? Would I need her w-2 info a and how can I get that info ? Thank you !
Another good video.
I thought about this for a bit.
If a person had $4200/year in income and you're trying to claim that person as a dependent, that person's greater of $1100 or $350 plus earned income. So if this $4200 is mostly income from work, it'll be tax free anyway so the entire $500 is a net benefit. But if the $4200 is unearned income like bank interest, $3100 becomes taxable at 10% or $310. $500 - $310 = $190 of net benefit. So depending on the type of income, this $4200 limit may have varying impact on the federal income tax side. Of course, state income tax might also be a factor so this might get a bit tricky to figure out the net benefit.
Emikam1 you are a human calculator my friend!
Hi Mike, I would like to know if you provide a filing tax training to whom who want to learn.
Thanks
Hi Reagan, thanks for reaching out. I currently do not. I was thinking of building an online course to cover such matters in the future.
Can you talk about 401k and how president biddem will impact the plan in taxes
Hey Luis! I've actually been pulling research together already to produce a video on that very subject. You must be a mind reader ;)
Money and Life TV to be honest I was shock about what hidden is trying to do with traditional 401k I be waiting for you thoughts about taxes in this issue. You are the second youtuber who tell me that Jajajaja have a blessing day
@@luisahernandezmunoz8332 Yes, Biden's been trying to be sneaky with calling this a "tax credit". A 26% "tax credit" is worth less than a 22% tax deduction in his proposed change for the 401(k) and perhaps other qualified retirement plans.
Hi, a nice a video of yours. Very helpful. I'm just wondering if i can claim my child as dependent. This is the screnario. My kids are already Resident Alien with SSN, they went to other country to live, stay with their mother (NRA) and go to school temporarily for 2 years. They can stay 2 years because of travel documents. My wife doesn't work there. And I'm the providing their needs. My question is can i claim them as qualifying child?thank You. My kids age are 4 and 6 years old.
Hi Richard this might help. This is from the IRS website: In general, you can claim exemptions for individuals who qualify as your dependents. To be your dependent, the individual must be a U.S. citizen, U.S. national, U.S. resident alien, or a resident of Canada or Mexico for some part of the calendar year in which your tax year begins.
Children usually are citizens or residents of the same country as their parents. If you were a U.S. citizen when your child was born, your child generally is a U.S. citizen. This is true even if the child's other parent is a nonresident alien, the child was born in a foreign country, and the child lives abroad with the other parent.
You must include on your return the Social Security number (SSN) of each dependent for whom you claim an exemption. If your dependent is a nonresident alien who is not eligible to get a Social Security number, you must list the dependent's individual taxpayer identification number (ITIN) instead of an SSN.
See Publication 501, Exemptions, Standard Deduction, and Filing Information, for more details. Also, for tax years beginning after December 31, 2017, taxpayers (including aliens and nonresident aliens) cannot claim a personal exemption deduction for themselves, their spouses, or their dependents.
I placed a link to the pub here if you need additional information: www.irs.gov/pub/irs-pdf/p501.pdf
Off the top of my head it sounds like you can claim them, but please verify with the publication as I am honestly not 100% certain. The fact that they have a social security number is very important which is why I think you can claim them.
Thanks for the videos Mike. I have a question( might make a good video). So my parents are 62-67. There magi is below 39k my mother still works my dad is retired. They have a couple rental properties. My question is about the savers credit.. Couldnt they contribute to a Roth for 2020. Catch the 50% savers credit. Then liquidate the account. Even if you wind up paying the tax plus penalty for the 5 year rule? I'm thinking it would still be a easy gain. Although I would likely prefer holding out 5 years or really 4. Thoughts?
If im not looking at this wrong .it seems to have great implications for older parents. Even if they didn't want to do it . I could do it for them. And after year 1 each year you could put the credit in and another 2k. And receive 100% percent returns on your personal 2k contribution year after year. Or until they stop the program. Looking forward to hearing from u.
Over the course of 10 years reinvesting the credit + an additional 2k. To acquire the next credit. If my math is correct. Assuming a bondlike 3% annual return. The 22,000 dollar investment would grow to 47557. In 10 years. Seems like a total return of 116% basically no risk
My niece wants to claim her parents who are both medically disabled not sure what type of social security they get I know they do not file taxes. Can she claim them if she is the only ones working and they live with her? I’m sure they have over $4300 a month in these benefits
Hi Teresa, if their only income is social security that means none of it will be taxable. Therefore, according to publication 501, and what you describing I think she may be able to claim them. However, the thing that may disqualify her is does she actually provide more than 50% of their support considering they make $4,300 per month? I think that is the item she needs to work out, and to be able to prove if she were ever audited.
You're the best 👌
Hi mike, can I claim my retired mom (66yrs old) who lives with me even though she’s receiving $1251.50/month ( minus $148/mo Medicare part B premium) SS pension?
Hi Fluffie, is social security her only income? If so none of it would be taxable. For the purposes of social security only the taxable portion is included in the gross receipts test. Therefore, she should would qualify as someone you could claim in that case according to IRS Pub 501. Of course if you claim her she cannot claim herself. Also assuming all the other tests are met. Hope that helps.
@@MoneyandLifeTV thanks mike! Yes, SS is her only income. I was told that I can claim my mom as dependent, but you mention the income must be something like $4000?!? In order to be a dependent. The other bad side is, since her SS income is considered non filer, she did not receive the 2 stimulus checks when I put her as my dependent in 2019. I hope she will get the 3rd stimulus since she need it. Thanks!
Hi Mike. Nice video. Can you please answer my question. If one student is 23 years old full-time student files his tax return and his parents do not claim him dependent on their tax return also parents do not provide any financial support. If he has a W-2 income of $2400 and an Unemployment income of $24000. Can he claim a $600 of second stimulus check on his tax return?
Received reply from Tax Research center 👇👇👇👇👇👇👇👇👇👇👇👇👇
Response
The determination of whether this student is a dependent will come down to the support test. If you can show that the daughter provided more than half of her own support from funds NOT including the unemployment compensation, then the daughter will not be a dependent and will qualify for the Recovery Rebate Credit ($1,800 stimulus payments) by filing her own independent return. If you cannot show that the daughter provided more than half of her own support (again not including unemployment compensation), then she will be considered to qualify as a dependent of the mother. In this case, even if the daughter files an independent return, she will not qualify for the the Recovery Rebate Credit.
The child muct provide over 1/2 of their support with EARNED income. Unemployment compensation is unearned income. Further, "income" does not count for the Support Test, per se. Money SPENT counts for the support test. That could be from anywhere, including earned income, unearned income, gifts or savings.
For the stimulus funds, the key criterion to hone in on is whether a person qualifies to be claimed as a dependent, and not necessarily whether the person was claimed as a dependent. If a person can be claimed as a dependent by another taxpayer (even if that taxpayer does not claim the person), then the person should not be eligible for a stimulus payment. This is true for both 2019 and 2020 returns. You can complete the Recovery Rebate Credit worksheet on page 59 of the 2020 1040 instructions to determine any amounts due.
Q. Who is eligible for a stimulus payment under the CARES Act or the CAA of 2021?
A. All individuals are eligible for the full stimulus payment credit, except:
Anyone who could be claimed as a dependent by another taxpayer.
References
2020 1040 Instructions, p. 59
www.irs.gov/pub/irs-pdf/i1040gi.pdf
The Consolidated Appropriations Act, 2021
trc.thetaxinstitute.com/the-consolidated-appropriations-act-2021/
Economic Impact Payments 1 & 2 Stimulus: Eligibility Requirements
trc.thetaxinstitute.com/articles/2020-economic-impact-payment-stimulus-eligibility/
How is a recovery rebate credit (RRC) due to Covid-19 stimulus legislation reconciled on the return?
trc.thetaxinstitute.com/articles/how-is-a-recovery-rebate-credit-rrc-due-to-covid-19-stimulus-legislation-reconciled-on-the-return/
Additional Information, if any
Confidentiality Notice: This transmission is intended only for the use of the individual or entity to whom it is addressed and may contain information that is privileged and confidential. If the reader of this message is not the intended recipient, you are hereby notified that any disclosure, distribution, or copying of this information is strictly prohibited. If you have received this transmission in error, please notify us immediately by submitting a Customer Support message through the Tax Research Center website.
Can my mom claim her unemployed son who live in his car. She’s been supporting him for years. Thx in advance
Hi Emy, possibly....is he receiving unemployment or other forms of income? If so she might not be able to claim him. Taxable unemployment compensation would count against the gross income test.
@@MoneyandLifeTV No he’s not receiving any government assistance. My mom pays for everything from his car insurance, cell phone, food everything for over ten years now since he lost his job and became depressed.
📼 Checkout some of our most popular INVESTING and TAX related videos
✅ Earn $100,000 a year in dividends: ruclips.net/video/DWu3oU6dcBs/видео.html
✅ Dividend Investing Pros and Cons: ruclips.net/video/3gmbrO_PUt8/видео.html
✅ Our Dividend Income Year 6: ruclips.net/video/ppwnTGWNcUY/видео.html
✅ Best Investments for each account ruclips.net/video/WjlOmA-xWAU/видео.html
✅ Calculating dividend tax rates: ruclips.net/video/ldZaDdmcWtg/видео.html
✅ Making your dividends qualified!: ruclips.net/video/YmYcxDLzXyY/видео.html
✅ How to save taxes on stocks: ruclips.net/video/_gaJ6jXgGb4/видео.html
✅ Capital Gain Taxes Explained: ruclips.net/video/BCQYorPgDKs/видео.html
✅ New Tax Laws for 2020 Explained: ruclips.net/video/ewhbBCRvIO0/видео.html
✅ Dividend and REIT Taxation: ruclips.net/video/Y0OxeCS3_H4/видео.html
✅ How to fill out the new 2020 W-4 ruclips.net/video/_VPjX0dDTgs/видео.html
🎥 My Complete Investing Playlists can be found here:
► Dividend Investing: shorturl.at/gxBFY
► 401(K) Investing: shorturl.at/fwAW8
► Investing in the stock market: shorturl.at/iuyEQ
Hey mike how can i contact you?
Hey there Finanzas best way to reach me is at mkchip123@gmail.com
I take care of my dad and girl friend whose are disable people. I pay for all their expenses, bills, rent, and needs.
Girlfriend must have lived with you for the ENTIRE year. Her income must have been less than $4,300. Dad's income must have been less than $4.300 too.
Is there a way to not claim college son as dependent so he can get the two stimulus payments of $1200 and $600 ?
Hi Shawn, you can certainly choose not to claim him, but I would hate to see you lose the tax credit if he is not going to claim himself. If he doesn't earn an income and you provide over 50% of his support he probably cannot claim himself even if he wanted to. Just keep that in mind.
I have a very stubborn mother who is trying to get me to claim my brother as a dependent so that she can get more money off it because she’s married to someone with an ITIN who’s head of the household. He has always claimed him up until now that the stimulus checks were sent , now she wants me to claim him. That’s basically fraud right? Bc the notary who files her taxes has no issue doing it 😐
I have a question: can i claim my mother who is on ssdi ($945.00 monthly) and my brother who received less than $800 on a W2 and less than $9000 in unemployment in 2020 (now that its tax free in 2021 does that not apply?) and grandma who receives 552 pension Plus 330 in social security. They all live with me and I support them.
Mother: Yes! Brother: NO---- His income was more than $4,300. Grandma: Yes.
I have a friend who has been supporting parents in Mexico who were legal US working residents. He Father gets SS only income. There has been some big medical expenses this year she paid for too. Being single she has been hit with considerable taxes too. Is there a possibility she can claim the parents as dependants and or the medical expenses. My understanding of her father's SS income is exempt.
Yes! As long as she provided half or most of the income for her parents. And both of the parents' incomes were less than $4,300 for the year.
hello guys quick questions i sell stuff on ebay and i profit 9k after all expense i file my tax with a cpa he say i only have to pay back $780...i thought i would be paying more than 780..
so is 780 the correct number to pay back if u make 9k in profit any 1 know?
Hi Kevin, off the top of my head don't know, it depends on your total income and overall tax rate. With Ebay there is potential self employment related tax, plus income taxes. If overall income from all sources is low then your overall all tax rate will be low.
i have a question for you.
im traing to do my taxes im from honduras the sistem is asking me if my dependt is
a U.S. citizen, resident, national, or a resident of Canada or Mexico?-
we are from honduras, i answerd no
the sistem say Unfortunately my depent doesn't qualify as your dependent.
how can i file this
Hi Alejandro, I could be wrong, but without them having a valid social security number or tax identification number I don't think you can.
Taxpayer was 55 years old in 2021 and adjusted gross income was $72,858 in 2021. Dependent (daughter) was 21 years old in 2021 and adjusted gross income was $30,412 ($7,824 wages, $437 pension, $4,691 unemployment).
Dependent is a full time college student Tax Form 1098-T was verified. Can taxpayer still claim daughter on his taxes?
No. She made more than $4,300 for the year. She had a job, she made over $30,000.
So to be clear, even if I paid all rent, utilities, food, transportation costs for my 25 year old daughter who made over $4400 (in 2022)?
Daughter is disqualified. She made more than $4,300 in 2022.
My friend has a daughter in Mexico and the child is a citizen they send money to
There can you put it on the taxes???
Hi Edgar this might help. This is from the IRS website: In general, you can claim exemptions for individuals who qualify as your dependents. To be your dependent, the individual must be a U.S. citizen, U.S. national, U.S. resident alien, or a resident of Canada or Mexico for some part of the calendar year in which your tax year begins.
Children usually are citizens or residents of the same country as their parents. If you were a U.S. citizen when your child was born, your child generally is a U.S. citizen. This is true even if the child's other parent is a nonresident alien, the child was born in a foreign country, and the child lives abroad with the other parent.
You must include on your return the Social Security number (SSN) of each dependent for whom you claim an exemption. If your dependent is a nonresident alien who is not eligible to get a Social Security number, you must list the dependent's individual taxpayer identification number (ITIN) instead of an SSN.
See Publication 501, Exemptions, Standard Deduction, and Filing Information, for more details. Also, for tax years beginning after December 31, 2017, taxpayers (including aliens and nonresident aliens) cannot claim a personal exemption deduction for themselves, their spouses, or their dependents.
Can I claim my twin niece who is 7months old and my brother has his own business he makes more then 4300 can I still claim his daughters
Yess! They are your nieces; they don't need to live with you all year-- as long as your brother doesn't claim them on his tax returns.
What do I do if my daughter claimed her son when he lived with me for the hole year and new she couldn't claim him
Hello, I'm 24 and not working currently or in college anymore (graduated in 2020). Can my parents claim me as a qualifying relative or a qualifying child on their taxes for 2021 tax return?
Hi Becca, they may be able to claim you as “other dependent” assuming you live with them still and if you have made less than $4,000 for 2021
@@MoneyandLifeTV Thank you!
Hello, I have a question, I was just checking through my cash app and I realized that I sold a stock at $1.67 that I had originally paid $1 for. Cash App sent an email to me & all users saying that anyone who sold a stock for more than what they paid to get it may owe taxes. My parents just filed for taxes on Monday with H&R Block and they claimed my sister and I “credit for other dependents” only since we are 23 and 24 and no longer in school or currently working at this very moment. Will my parents have to amend their taxes not claiming me anymore because I gained $0.67 more than what I paid for the stock? Cash App said they will send a form but idk if they will. Is this bad? Do I have to file? I also received $0.01 each from two companies I had invested $1 & $5 dollars in 2021.:(
I just received a letter from irs that I owe them 5,000 + for my son I claim on my tax last year
So you can't claim 1 for yourself anymore?
How can someone claim you without your consent as an adult?
I would love to know how can you not be claim
Can a child claim their parent as a dependent for 2020 tax year if the parents are undocumented immigrants but they have an ITIN (tax id number), and lived with you in the USA for the past five years i.e. they meet the substantial presence test, and you pay for more than 50% of their expense. Would this parent fall into the category as a U.S. resident alien for IRS tax purposes? Even tho they are technically illegal immigrants according to immigration law?
If legal. Yes! If illegal. No.
Hi Mike
can I claim my brother who is 28 years who is zero income and he Is not in school and he lives with me 4 years
Yes!! As long as his income was less than $4,300 for the year.
My return refund went from 3300 for one child to only 300 more for my second . Did I do something wrong ?
What about claiming a parent with dementia who receives Social Security Income...
Yes! As long as her income is less than $4,300... excludes SSI.
Question:Can my nephew claim my kids on his taxes
Yes! As long as you DON'T claim them.
I claim as dependent a friend and her child I been supporting them my taxes was rejected cause her Social Security number has been used should I take her out as dependent or should I send the form 14039
Take her out, someone else ALREADY claimed her.
My brother is 19 years old and he did 24 , can I still claim him since I paid mostly of the stuffs at home
Yes! As long as your brother made less than $4,300 for that year.
CAN AN INTERNATIONAL STUDENT (BROTHER) BE CLAIMED AS DEPENEDT ON YOUR RETURN? CAN HE BE CLAIMED AS A QUALIFYING RELATIVE?
No.
Can I claim myself?
Yep, its called the standard deduction :) That is essentially claiming yourself.
@@MoneyandLifeTV Thank you do you have a video explaining it?
Can you claim girlfriend with no income?
Yess! As long as she lived with you for the ENTIRE year, and was dirt poor.
Hi! Can I and my wife (Always Filling jointly) claim my 18 year old child, even if she earned $850 plus unemployment $5200 for the year 2020, yet she didn't attend any school in 2020? She lived with us all year and we both supported her, all year. And, how? (Head of the Household??) Thanks!
No. Her income was more than $4.300.