Questions About Dependents

There are so many questions centering around dependents and what is needed to prepare returns. I was asked the question today, for the year 2003, could a taxpayer claim their son who lived under 6 months and earned over $7000 in that tax year, would they receive a tax credit?



The answer is no! In order for a taxpayer to claim someone as a dependent, they have to reside in the home with you for at least six months, and earn less than $7,000 in income for that year.



However, if a taxpayer was taking care of a parent that could not earn income, then they could count for them as a dependent but not as Head Of Household.



If you would like to learn more about dependents, visit http://www.irs.gov/