My 11 yr old daughter has some unearned income from a UTMA account. She has enough to file her own return, and would get a much better rate that if I included it on my return.
My income is such that claiming her as a dependant does NOT lower my tax bill. So - I was wondering if I could NOT claim her as a dependant. That way - on her return - she would get the full personal exemption and not owe anything.
I know I CAN claim her as a dependant, but do I HAVE to?
If I do NOT claim her as a dependant, can she calim the full personal exemption on her return?
2007-04-07 14:22:22 · 6 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
No, you do not have to claim your daughter, but she cannot claim herself as long as you are able to claim her. As per the IRS website:
You can take one exemption for yourself unless you can be claimed as a dependent by another taxpayer. If another taxpayer is entitled to claim you as a dependent, you cannot take an exemption for yourself even if the other taxpayer does not actually claim you as a dependent.
http://www.irs.gov/publications/p501/ar02.html#d0e3102
2007-04-07 18:54:37 · answer #1 · answered by tma 6 · 1⤊ 0⤋
You are not required to claim your daughter as a dependent, but even if you don't, she cannot claim herself. Any child under the age of 19 cannot claim themself if someone else provided more than half of their support. Did she make more than $5150 in taxable income? If not, she will not have any tax liability anyway.
2007-04-08 03:39:26 · answer #2 · answered by Amy F 3 · 0⤊ 0⤋
I don't think so, the question on your daughters tax form is
CAN you be claimed as an exemption on someone else's tax
Not Are you being claimed, Call the IRS to be sure but I think
these guys have figured out how to screw us all, children included.
2007-04-07 22:08:00 · answer #3 · answered by justgetitright 7 · 1⤊ 0⤋
Yes, you are not required to claim her as a dependent. The IRS law states that two or more people can't claim the same person as a dependent. There is no provision in the law that you are required to claim someone as a dependent. So if you don't claim your daughter as a dependent, she can claim her personal exemption on her tax return.
2007-04-07 22:48:14 · answer #4 · answered by Lisa 2 · 0⤊ 4⤋
No the adult has to claim her
2007-04-07 23:11:16 · answer #5 · answered by kurt_1225 2 · 0⤊ 1⤋
YES
2007-04-07 21:26:44 · answer #6 · answered by cork 7 · 0⤊ 2⤋