I have two questions. Is the dependent child tax credit $1000/child? How do I enter the information on the online version of Tax Act?
Here is my situation. While using the software, it asks how long has each child lived with you in 2006 in months. I am married and we have a 4 year old. For him it is easy since he lived with us the whole 12 months, it looks like I am receiving the full tax credit. We had twins who were born in August of 2006. If I insert that they lived with us for 4 months, it doesn't look like we are receiving the credit probably because it is calculating it as partial year. If I enter 12 months, it is a lie because they were born in August. What is the solution? Would most software programs work the same way as far as calculating the amount? I'm sure others have come across this. Thanks in advance.
2007-03-29 01:07:05 · 6 answers · asked by Chris F 2 in Business & Finance ➔ Taxes ➔ United States
According to Pub. 972 you have an "exception" You do put the twins lived with you for the full year since they were born in 2006.
To see the reference go to: http://www.irs.gov/pub/irs-pdf/p972.pdf
2007-03-29 01:14:11 · answer #1 · answered by Mom of 2 4 · 4⤊ 0⤋
You enter that the twins lived with you for the entire 12months of 2006. It doesn't matter if they were born on the last day of December, you are still entitled to a full tax credit for those children. As far as $1000 per child, yes that is what you are SUPPOSED to receive, but there are additional deductions and adjustments that are made, that it doesn't calculate out to exactly that amount. Hope this helps...you know the IRS...give a penny, keep a twenty!
2007-03-29 01:24:35 · answer #2 · answered by Punkie Brewster 4 · 3⤊ 0⤋
My tax software has instructions that for a child who was born during the year, and lived with the taxpayer all year, answer 12 months to that question.
Congrats on the twins - have fun.
2007-03-29 12:39:49 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
For tax purposes the correct answer is 12 months for children born during the year. Even if they are born on the 31st of December for tax purposes they are considered as having lived in your home for twelve months. Good luck.
2007-03-29 03:50:51 · answer #4 · answered by acmeraven 7 · 2⤊ 0⤋
A dependent who was born or died during the year is considered to have lived with you all year. The tax software should be "smart" enough to recognize that. Say 12 months; it's NOT a lie.
2007-03-29 01:12:09 · answer #5 · answered by Bostonian In MO 7 · 3⤊ 1⤋
If he's claiming his baby on his taxes, then you definately shouldn't signup for something at artwork. at first, the youngster care rate is going with the youngster. via fact which you're no longer claiming the youngster, you will get NO benefit in case you attempt to do a based Day Care as pre-tax because it's going to be added back on your earnings on the top of the 300 and sixty 5 days.
2016-11-24 21:11:40 · answer #6 · answered by ? 4 · 0⤊ 0⤋