This Year, I have been taking care of my niece an nephew because there mother can't take care of them right now , I heard its possible to add them as dependents,and i also hear that the "FEDS" will come down on me hard for that. What is the truth to all this. "Someone please Help a Brotha!"
2006-10-01 11:26:06 · 11 answers · asked by NYC_GEE 1 in Business & Finance ➔ Taxes ➔ United States
I do it all the time. I claim my child and my neice, she's listed as my neice on my return also. I don't lie, if you're taking care of them there is no problem with it. Make sure you have their ss cards and birthdates, also make sure to let their mother know you plan on claiming them because you take care of them. If you claim them first, and then she tries she'll be rejected. This happened to me also, my neice's mother was going to let someone else claim her because they were going to give her $600 of their return (her mother doesn't work), I'd already claimed her, and that person was rejected. Her mother could have put up a fight but she'd have to explainwhy she was selling her daughter off. Just be careful, if it's legitimate you'll be fine.
2006-10-02 01:54:39 · answer #1 · answered by NETTA M 3 · 0⤊ 0⤋
As of 2005, there are two types of dependents. Qualifying Child and Qualifying Relative. A niece or nephew can be your Qualifying Child if ALL the following are true:
1) They must be under 19 at the end of the year (or under 24 and a full-time student)
2) They can not provide more than ½ of their own support. Notice I didn't say that you have to provide ½ of their support, just that they don't provide their own support. Loans taken out by a student for their college education which are the student’s responsibility to pay back are considered support paid by the student on their behalf.
3) They must live with you for more than six months during the tax year.
Notice I didn’t mention income. They can make as much as they want as long as they don’t pay for ½ of their own suport. That being the case, oftentimes, the child is the Qualifying Child for more than one taxpayer. If that is the case, only one person can claim them. If more than one claim them, then it goes to tiebreaker rules where the parent ALWAYS wins. Of course, if they lived with you for more than 6 months and did not live with their parents for at least 6 months, then the parents can't claim them as a Qualifying Child and you win!
If the person doesn’t qualify as your Qualifying Child, they could be your Qualifying Relative. To claim a niece or nephew as a Qualifying Relative, ALL of the following must be true:
1) You must provide at least half of their financial support. This is different than Qualifying Child where all that had to happen is that the child doesn’t supply half of their support. Now, YOU have to be the one who provides half. If you are a bit leery on what support means, I suggest doing some research in Publication 17 from the IRS or seeking a tax professional.
2) Their gross income for the year must be less than the standard exemption which, for 2006, is $3,300.
3) They can NOT be a "Qualifying Child" of ANYBODY! Even if that person decides not to claim them, if they are somebody’s Qualifying Child, they can NOT be your Qualifying Relative. See above for what is needed to be a qualifying child.
Notice I didn’t mention how long they stayed with you or their age. These are NOT considerations for Qualifying Relative when it comes to nieces and nephews.
One more thing, in order for you to claim ANYBODY, you must be a citizen of the US or a resident of the US, Canada, or Mexico. You also can not be anybody else’s dependent regardless if they claim you or not. If you qualify as someone’s qualifying relative or qualifying child, you can NOT have a qualifying relative or qualifying child of your own.
Hope this helps! :)
2006-10-01 12:56:55 · answer #2 · answered by TaxMan 5 · 0⤊ 0⤋
If you provided more than half their support and they have been living with you for more than half the year, then you can claim them, and can possibly get child tax credits for them also. Would be a good idea to talk to their mother first to let her know you're going to claim them. If she's not supporting them, she is not allowed to, but if she does anyway, could be a pain to straighten it all out.
If both of you claimed them and the IRS caught it (which they almost surely would) then you'd both probably get a letter or call from them to prove your claim, and whoever wasn't justified would have it disallowed and have to pay the extra tax. Dire warnings of the IRS coming down on someone hard, or someone being in big trouble, are somewhat exaggerated. But it's a lot better not to have to deal with the fallout anyway. If their mom will give you a letter saying that this year they're living with you and you're supporting them, could help if any questions come up. Not needed though for you to claim them.
2006-10-01 12:42:11 · answer #3 · answered by Judy 7 · 0⤊ 1⤋
You must contribute more than half of their support to claim them as dependents. And it won't work if their mother claims them too. Yes, you can get in trouble if you do it inproperly. The IRS is very likely to take a close look at your return if you suddenly start claiming two dependents you didn't have before. If you are seriously considering doing this, you better get some professional legal advice first.
2006-10-01 11:28:07 · answer #4 · answered by MOM KNOWS EVERYTHING 7 · 0⤊ 0⤋
Chances are their mother has already claimed them, taking advantage of the huge tax break, and Earned Income Credits. You claiming them will send up lot's of red flags when the childrens social security numbers are found on two seperate tax returns, making you, the non parent, look guilty.
2006-10-01 11:29:12 · answer #5 · answered by Anonymous · 0⤊ 0⤋
1)Is any one claiming them, in other word are their SSN used by someone else on the tax return other than you.
2)Are you or the kids on warfare and is this support more than 50% of the kid’s living standard.
If you are supporting the kid and they are related to you, They live with you more than 50% of the year and you are supporting them with you earned income and no one else is taken that depend then yes, you may take that depend and claim head of house hold too.
2006-10-02 02:13:11 · answer #6 · answered by Kenshin 5 · 0⤊ 0⤋
I hope you get this figured out.Because you deserve it that's for sure. That's a cool thing stepping up to the plate like that.Best of luck! Try to get there mother to understand that you need to claim them on your tax's also she may just sign over a release of all parental rights.Ask her it can't hurt.
2006-10-01 11:37:38 · answer #7 · answered by Anonymous · 1⤊ 0⤋
You really need to talk to a CPA about this one. This isnt a subject that alot of us can answer with any accuracy.
If they had been living with you and you were supporting their mother and them, I can see where you could. If you were only helping out financially, I think the answer would be no.
2006-10-01 11:29:00 · answer #8 · answered by shirley e 7 · 0⤊ 1⤋
If they have been in your home for more than 6 months and you provided more than 50% of their support they are your legal dependents.
If they qualify as your dependents they don't qualify as their mothers regardless of the relationship.
I sure as hell can answer it with accuracy!
2006-10-01 11:28:26 · answer #9 · answered by WitchTwo 6 · 3⤊ 1⤋
If you have receipts of thing that you bought for them. Then you claim them! But if it's not true, you'll be paying through the nose!!
2006-10-01 11:30:17 · answer #10 · answered by alfonso 5 · 0⤊ 0⤋