CH 4 Flashcards
How do you determine a “Qualified person”?
dependent taxpayer test
joint return test
citizen or resident test
How do you determine a qualified child?
relationship
age ( under age 19) or ( full time student under age 24)
residency ( live with taxpayer for more than six months)
support ( provide MORE THAN HALF for their support)
joint return ( child cannot file a joint return for tax year)
What are the requirements for qualified relative?
relationship or member of the household ( must live with taxpayer for a year)
GI ( must have GI LESS than 3900)
support ( taxpayer must provide MORE THAN HALF support)
not a qualifying child
What does dependent taxpayer test mean?
taxpayer who is claimed by someone CANNOT claim dependents.
How do you use Joint return test?
Basically, a taxpayer may not claim a married person as dependent if the married dependent files a joint return.
What is citizen or resident test
Taxpayer may not claim a person as a depend unless that person is US CITIZEN, US RESIDENT, US NATIONAL ,or RESIDENT OF CANADA OR MEXICO.
BUT, adopted alien can meet test if lived with taxpayer for a FULL YEAR.
How do you determine support?
1) anything that benefits health and well being of QP
2) lodging ( use value not actual cost) (total expenses for household expenses are divided by the number of persons
What items are not considered support?
capital items
federal, state, and local income taxes paid from dependents’ income.
life insurance premiums
funeral expenses
survivor’s and dependent’s educational assistance payments.
certain scholarships
How does QC qualify for child tax credit (CTC)?
taxpayer has QC
QC must be under age 17
QC is claimed on the taxpayer’s return
QC must be US citizen, US national , or resident of the US.
Can CTC carry over into future years?
no
