I'm getting ready to file my taxes.
A friend of mine has been living with me and my bf. My friend didnt work at all in 2006. He does have a child. Can i claim his child as a dependent on my Taxes? I did provide a lot for him. But i also paid my friend to watch my son while i was at work. Can i use that as a deduction? It wasn't much, but it was something. Do i need documentation showing this? Like receipts or signed letter from him?
And i also got a letter a couple weeks ago from IRS saying that i owe them $1300 for an error on my 2005 Taxes. So if i get a return for 2006 will they keep it? Even if i requested a Payment Plan? (still waitin to see if that gets approved)
2007-01-19 09:28:25 · 4 answers · asked by *~Andrea~* 2 in Business & Finance ➔ Taxes ➔ United States
My friends child also lived with us. My friend is okay with me claiming his child. We just want to know if its ok to do so.
2007-01-19 09:45:11 · update #1
The amount i owe is becuz i had some additional income in the beginning of 2005 and forgot to claim it on my return. So that addition $4000 changed everything on my Taxes...put me in a higher tax bracket (not becuz i tried claiming some kid, and got caught - like someone is trying to say)
2007-01-19 10:13:34 · update #2
Lots of questions. Regarding if you can claim your friends kid. Well you have to ask the parent if you can. But they will probably say no.As for your child care expenses if you paid that person more than 600.00 (I think) then you have to 1099 them and they have to claim that money as income (even if they didnt work) and you will have to provide that person ss# which I doubt they will let you do that too. and lastly yes they will take your refund to pay themselves back before they give you any money. But if you did get your taxes done by a tax professional, they guarentee that their work is correct as long as you give them the correct information.
2007-01-19 09:40:32 · answer #1 · answered by surfer grl 5 · 0⤊ 0⤋
You "might" be able to claim the friend as dependent but not the child as it is not your child.
If you want to claim the money paid to the friend for watching your child, your friend will have to claim it as income. Also, as it was in your home, your friend was technically your "employee" and you should be paying social security and unemployment taxes on them and withholding taxes on what you paid them. (ie. a big mess).
Yes, they will keep any refund to pay the past due even though you have entered in to a payment plan.
2007-01-19 17:37:48 · answer #2 · answered by Wayne Z 7 · 0⤊ 0⤋
No, you can't claim his kid, sorry. Yes, you can claim the child care credit for the money you put out for child care. If audited, you might need documentation, but not when you file.
And, yes, the IRS will take your refund and repay themselves. They're very pushy that way.
2007-01-19 17:38:02 · answer #3 · answered by hatchland 3 · 1⤊ 0⤋
no you cannot claim the kid and it sounds like you tried it the year before and IRS got wise to you. Yes if you get a return they WILL take it out. And you better pay it off before apr 15th before further penalties and interest hits.
2007-01-19 18:04:36 · answer #4 · answered by Anonymous · 0⤊ 0⤋