There are important tax benefits available for taxpayers who support dependents. Although the benefits have changed in the past few years, you may be eligible for tax breaks related to children, child care, and tax credits that reduce your tax liability. In addition, there is a higher standard deduction for the head of the household status. The benefits of listing dependents on your income tax return make it worthwhile to understand if the people living with you qualify.
To determine if the family member, relative, or friend living with you meets the criteria for a dependent, the IRS poses questions to determine if a child or a relative is a qualified dependent. Some of those questions involve:
If the circumstances fit, you can claim a parent or grandparent as a dependent—or a qualifying non-relative who is financially reliant upon you and is a member of your household.
If you have questions about the qualification of your dependents, talk with an experienced tax attorney for help. It is worth knowing who you can claim and understanding the tax credits that are currently available to you. Just as important, it is critical to understand that fabricating dependents on your return can quickly backfire into tax fraud, penalties, and even an IRS criminal tax investigation.
The legal team at Robert J. Fedor, Esq., LLC delivers experienced legal representation to clients throughout the U.S. and abroad on matters of tax crime, bankruptcy, or IRS criminal or civil audits. When you have tax questions, call us at 800-579-0997 or contact us. We have offices in Cleveland and Chicago.