Federal income tax?

Question

My 20 yr old daughter lives at home and goes to college. She also works too. What is the amount of money she can make so that I can still claim her on my taxes? I know if she makes over a set amount I cant claim her anymore. Just dont know what that amount is.

Answer 1

You have hit the jackpot with this one. If your daughter is under age 24 and a student she can make a million dollars and you can still claim her as a dependent on your return. Just make sure when she fills out her return she checks the block indicating she is releasing her dependency. Also, the person claiming the dependency (you, in this case) is the one who gets the Hope or Lifetime credits for their tax return; no matter where the money comes from. Only the person taking the dependency gets the credit. This also entitles you to EIC for your daughter if you meet the income criteria.

Answer 2

If she was a full-time student for any part of any five months of the year, there's not a limit to how much money she can make and still be claimed - it would depend on how she uses that income. As long as she does not provide more than half of her own support, you can still claim her. If she does pay over half of her own support, then you can't. Educational expenses count as support. The IRS has a worksheet to calculate support.

Answer 3

actually if she lives at home and is a student you can claim her regardless of how much she makes, but she can't claim herself on her tax return. you can do the returns both ways and see which way benefits the household best.

Answer 4

Don't pay personal federal income tax at all! There is NO LAW that requires you to file a 1040 or pay personal income tax in the United States.

http://video.google.ca/videoplay?docid=-4312730277175242198&q=freedom+to+fascism

Answer 5

to irs.gov and search dependency test.