Taxpayers and Dependents Flashcards
U.S. citizens
- An individual born in the U.S.
- An individual whose parent is a U.S. citizen
- A former alien who has been naturalized as a U.S. citizen
- An individual born in certain U.S. possessions (Puerto Rico, Guam, Virgin Islands)
U.S. nationals
Individuals born in Samoa or the Northern Mariana Islands who are not U.S. citizens
Qualification for claiming a person as a dependent
Meet the 3 tests:
1. Dependent Taxpayer Test
2. Joint Return Test
3. Citizenship or Resident Test
Dependent Taxpayer Test
the taxpayer cannot qualify as a dependent of another person
Joint Return Test
the taxpayer cannot claim as a dependent a married person who files a joint return unless the married person files the return only as a claim for refund
Citizenship or Resident Test
the dependent must be a U.S. citizen, U.S. resident, U.S. national, or a resident of Canada/Mexico for part of the year
Qualification for a qualifying child
4 tests:
Relationship
Age
Residency
Support
Age Test
1 of 3:
-Under 19
-Under 24 and a full time student
-Permanently and totally disabled
Relationship test
Children and step-children
Residency Test
More than half the year (exception: school)
Support Test
Qualifying child or relative cannot provide more than half
Form 8332
For transferring credits to a noncustodial parent
Qualifying Relative
- Not a qualifying child
- Support test
- Gross income of less than $4700
- Either a member of the household or passed the relationship test
Dependent filing requirements
- Unearned income is >$1250
- Earned income is >$13850
- Gross income was more than the larger of $1250 or earned income (up to $13450) plus 400
Threshold for SE earnings
$400
Threshold for church wages
$108.28
Other Filing requirements
- HSA/Medicare Advantage distributions
- Advance payments of the Premium Tax Credit
- Special taxes like AMT
Schedule 1
Additional Income and Adjustments to Income
Schedule C
Profit/Loss from Business
Schedule E
Supplemental income and loss
Schedule F
Profit/Loss from Farming
Schedule 2
Additional Taxes
Schedule SE
Self-Employment Tax
Schedule H
Household Employment Tax
Schedule 3
Additional Credits and Payments
Schedule R
Credit for the elderly/disabled
Form 1040 SR
For seniors
Schedule A
Itemized Deductions
Schedule B
Interest and Ordinary Dividends
Schedule D
Capital Gains and Losses
Schedule J
Income Avg for Farmers/Fishermen
Schedule 8812
Additional Child Tax Credit
Schedule EIC
Earned Income Credit
The type of taxpayer identification you can get when you don’t have a SS Number
ITIN - Individual Taxpayer ID Number
ATIN
Adoption taxpayer ID number
Requirements for MFJ
status as of the last day of the calendar year
Some negatives of MFS
- can’t use certain credits
- no income exclusion
- no exclusion on interest income for education expenses from bonds
HoH Requirements
- unmarried
- providing for a dependent
Definition of unmarried
Separate returns and the spouse did not live in the home the last 6 months of the tax year
How qualifying surviving spouse works
Have a child that is a dependent and spouse passes away. No remarrying.
1. Year of passing - MFJ
2. Year after - QSS
3. Year after that - QSS
Cash method
income must be reported in the year of constructive receipt
Accrual method
income must be reported when earned (whether or not it was received)
