Child Credit

Five Important Changes for Taxpayers

February 5, 2009

Here are a few tax law changes you may want to note before filing your 2008 federal tax return: 1. Expiring Tax Breaks Renewed The following popular tax breaks were renewed for tax-years 2008 and 2009: Deduction for state and local sales taxes on Form 1040 Schedule A, Line 5 Educator expense deduction on Form [...]

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Rebate Quandry

January 20, 2009

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Today TaxMama hears from Sharon in Indiana who is perplexed. “A friend and his girlfriend have been living together since 2005. In 2006, they had a child. The mother claimed the child on her 2007 return and received a stimulus payment for $600. He filed as single and received a $300 stimulus payment. The mother [...]

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Stimulus vs Child Tax Credit

November 5, 2008

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Today TaxMama hears from Cho in New York, who says. “My 2008 tax rebate check included $300 per child. Do I still expect $1,000 Child Tax Credit for each eligible child when I file my 2008 federal tax return? Or, just $700 per child?”

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New Rules for Qualifying Child

October 10, 2008

Tax Provisions in HR 6893 Signed Into Law Oct 7, 2008 In addition to the Emergency Economic Act of 2008, President Bush has signed a little known Act which contains a clarification of the uniform definition of a qualifying child for purposes of the dependency exemption, EITC, dependent care, and HH filing status. This change [...]

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Claiming Niece

August 26, 2008

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Today TaxMama hears from April in Kentucky who tells us, “My boyfriend has lived with me since Feb 2008. He has supported the household, and also my niece, who lives with us and I have legal custody of. I was wondering, can he claim my niece on his taxes?”

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Violating Divorce Decree

July 31, 2008

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Today TaxMama hears from a divorcee who is concerned. She says “I got divorced in 2001. The decree stated that we would each claim one child as a dependent. When I moved to another state in 2006 my taxes were done by H&R Block. I didn’t realize they had claimed both children in my tax [...]

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Daycare Service

July 28, 2008

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Today TaxMama hears from Jodi in California with this question. “I am considering babysitting for my grandbaby in my home for a monthly fee. My son & daughter-in-law want to claim the child care credit on their taxes. Does this mean I’m self employed? Will I have to make quarterly estimated tax payments?”

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Child Care

April 8, 2008

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Today TaxMama hears from Jon in Texas, who tells us. “I work and my wife stays at home. We have our daughter enrolled in a religious affiliated mother’s day out/ pre-k program twice a week. Can the tuition for this be deducted as a childcare expense or such?”

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Adoption Subsidy

January 15, 2008

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Today TaxMama hears from Ben in Ohio who tells us, “In 2006 my son adopted a Downs Syndrome child. He receives a state subsidy from Ohio each month for those who adopt special needs kids. We don’t know if this is taxable income. “

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