I made about $25,000 dollars last year and I decided to let another relative claim my dependent on her tax return. However, I claimed my dependent on my W-4 and was collecting that in my net income. How much will I owe the IRS since I'll be filing single no dependents?
2007-04-11 13:00:37 · 4 answers · asked by tommyclandestine 1 in Business & Finance ➔ Taxes ➔ United States
The only relative that you're allowed to let claim your child is the child's other parent, unless the other relative meets the tests for the child to be a qualifying child - one of those tests is that the child has to live with them for over half the year. So if you just gave out the ss# to someone the child didn't live with, you've committed tax fraud and it could cost you plenty. If you both lived for example with your parents for over half the year and your parents claimed the child, then that would be OK since they'd be eligible for the claim.
That said, whether or not the claiming of the child by the other person was legal, what it cost you was tax on the $3300 exemption that you didn't get (around $500), the child tax credit ($1000), and a little over $1000 in EIC, so total of about $2500 in extra taxes since you didn't claim the child.
Depending on how much you had withheld, you probably won't owe that much, some of it will just be that you would have gotten a refund if you'd claimed the child. The amount you actually owe will probably be under $1000.
2007-04-11 14:24:51 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Claiming your dependent on your W-4 just means that you got less taxes taken out of your paychecks each time. Depending on whether you itemize or take the standard deduction, you may owe, or you may still get a refund. Was your child living with your relative for over half the year? You can't just GIVE someone your exemption for a dependent.
2007-04-11 13:20:35 · answer #2 · answered by Jess B 2 · 1⤊ 0⤋
Well head of household would pay about $150 less and a dependent is worth about $1250. Assuming that you are in the 10% bracket. 125 + 150 = $275 more in taxes that you would owe.
2007-04-11 13:19:14 · answer #3 · answered by RobertB 5 · 0⤊ 1⤋
When you both claim married, TWO exemptions and standard deductions are calculated into each of your withholdings. You only actually get two TOTAL. So especially if one or both of you make a good amount, you'd end up severely under-withheld.
2016-04-01 10:10:42 · answer #4 · answered by Anonymous · 0⤊ 0⤋