My 22 year old daughter and her 3 1/2 year old daughter and now 7 week old daughter have lived with me and my wife all this past year. She has not worked enough to file head of household for herself , so she wants to let us claim her and my two Grandaughters on our income tax since we supported all of them. Is this legal ?
2007-01-14 09:02:33 · 7 answers · asked by bigfred1954 4 in Business & Finance ➔ Taxes ➔ United States
The short answer to your question is yes. It is legal for you to claim your daughter and granddaughters as your dependents. However the best tax situation might be difficult to determine without more information.
Depending on how much money your daughter made, she may or may not need to file. If she file, she can file as head of household with 1 or 2 dependents; or she may file as single without dependents. You can claim none to all of them as your dependents. The best tax situation highly dependent on how much money she made, hence how much Earned Income Credit she will receive if she files.
Use the Tax Table in Publication 17 (on page 251 of http://www.irs.gov/pub/irs-pdf/p17.pdf ), and Publication 596 http://www.irs.gov/pub/irs-pdf/p596.pdf for Earned Income Tax Credit (eligibility and amount of credit) to help you determine the best option.
Best wishes.
2007-01-14 09:15:56 · answer #1 · answered by JQT 6 · 0⤊ 2⤋
Unless your daughter was a full-time student for some part of at least five months of the year, you can't claim her as a qualifying child even if you supported her. This answer would be the same if she had no income at all for the year. She doesn't pass the age test.
If she had total income under $3300 for the year, and you provided more than half of her total support, you'd be able to claim her as a dependent since she'd be a qualifying relative. If she made over $3300, then you can't claim her, whether she files her own return or not.
As to your granddaughters, if the older one lived with you over half of 2006 and the younger one lived with you from birth (except for her time in the hospital), then you can claim both of them. This assumes there's not a father out there someplace who has the right to claim one or both of them because of a written agreement between him and your daughter.
2007-01-14 10:01:59 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
It depends.
I assume your daughter is unmarried. Was she a student for at least five months in 2006?
If she was a student, then regardless of her income, you can claim her as a dependent. She would be considered your child for tax purposes. Your grandchildren could also be claimed by you. All three would be "qualifying children". Your daughter would file single without any exemptions on her tax return, so she can get her withholding back.
If your daughter was not a student, did she earn less than $3,300 in 2006? If so, then your daughter can be claimed by you as a "qualifying relative." Since she is a dependent of yours, the grandchildren are still your "qualifying children" and you can claim them.
If your daughter is not a students and earned more than $3,300, then you cannot claim her on your return. In this case, her children are her "qualifying children" as well as your "qualifying children". If she agrees, you may claim the grandchildren. The daughter will file as single with her own exemption.
I think that covers it.
2007-01-14 12:12:31 · answer #3 · answered by ninasgramma 7 · 0⤊ 0⤋
No, a depending won't be able to declare a depending. And in case you meet the regulations to be claimed, you're nonetheless a depending regardless of in case your moms and dads did not declare you - you mustn't legally declare your self, and by no skill your baby both. that is totally possible, assuming that you and your baby stay consisting of your moms and dads, that your moms and dads can declare the youngster also.
2016-11-23 18:21:00 · answer #4 · answered by Anonymous · 0⤊ 0⤋
The deduction belongs to whoever provides the majority of their support, if they live with you. Be careful; if they received welfare or some other subsidy, you may not have provided the majority of their support. Add up what you provided: the room and board value, clothing, utilities, cable, phone, medical, cash for sundries, etc. If it isn't the majority of their support, you can't take them.
2007-01-18 05:47:22 · answer #5 · answered by Scott K 7 · 0⤊ 0⤋
It sure is legal! As long as they are Qualifying Children (relatives) and have lived with you six months out of the year, you will be able to claim them. For more info. just go to www.IRS.com. They have answers to almost all your questions and tests to help you determine your status and qualifications for EITC!
2007-01-14 09:16:00 · answer #6 · answered by Sami%) 1 · 0⤊ 1⤋
Probably, but it's still best to ask your tax adviser.
2007-01-14 09:13:49 · answer #7 · answered by badbill1941 6 · 1⤊ 0⤋