How Much Money Can A Child Make So A Parent Can Carry Him?
How Much Is Too Much?
How Much Is Too Much?
-
-
Originally posted by SUE
What does "carry him" mean? -
AS A DEPENDENT ON 1040Originally posted by veritasComment
-
context
Sue, this question really doesn't make much sense. There are many elements involved in claiming a dependent exemption, some affected by the financial elements in changing ways.. The amount of money allowed depends on the source of income, how it is spent, and other variables. Please put your question into some kind of context.Comment
-
Income of Dependents
Sue, are you a tax professional?Originally posted by SUE
If the child is under 19, and the child is not providing more than half of his own support, there really is no "limit" to how much income a child can have. A child under 19 who is not providing more than half of his own support will be considered a dependent of his parents if the other requirements are met, and it doesn't matter whether his income is two dollars or $200,000.
I suspect that you are operating under the misconception that a parent somehow incorporates the child's income into the parent's tax form, and that a person claimed as a dependent cannot file their own tax form.
Both of these ideas are false. In general, a child's income is not reported on the parent's tax form. And in general, if a child has income over a certain amount, the child is required to file his own tax form, and it doesn't matter whether the child is claimed as a dependent on the parent's return.
A tax form is not a hotel room or a passport (I'm dating myself). You can't just add the kid on as an extra person. This is not the breakfast buffet. Kids don't eat free with a parent's meal.
If you didn't understand all this before you wrote your question, then you need to consult a tax professional.
Burton M. Koss
koss@usakoss.net
Last edited by Koss; 02-12-2006, 10:54 AM.Burton M. Koss
koss@usakoss.net
____________________________________
The map is not the territory...
and the instruction book is not the process.Comment
-
My experience
When my children were dependents, it depended on not how much money they made but how big were the purchases the money made. I was still able to carry a child that had several large dinosaurs, but gas stations made of metal were impossible to carry with the child. I found that using an investment vehicle, such as a scooter, was most beneficial. Better yet was a municipal van.Originally posted by SUEJGComment
-
Dependent
THE PARENTS USED THEIR SON AS A DEPENDENT SINCE HE LIVED WITH THEM. THE SON MADE OVER 35,000. THIS YEAR THEY GOT A LETTER FROM THE IRS SAYING TO TAKE HIM OFF BECAUSE HE MADE TOO MUCH MONEY FOR THEM TO USE HIM AS A DEPENDENT. SO I'LL ASK AGAIN HOW MUCH DOES A CHILD SUSPOSE TO MAKE ON HIS OR HER INCOME SO A PARENT CAN USE THEM AS A DEPENDENT SINCE THEY GOT A LETTER FROM THE IRS SAYING THEY CAN'T. I HAVE TO AMEND LAST YEAR AND TAKE HIM OFF THEIR RETURN BECAUSE OF IT.Originally posted by jainenComment
-
it still depends
Sue,
The IRS is working on the assumption that the parents did not provide support for the child in an amount equal to 50.1% of his total support. If the child took the $35000 and invested it in stocks and bonds and the parents paid all of this support then the IRS is wrong and no ammended return is needed. I would suggest first reading through the dependency requirements so that you fully understand them and then sit down with your client and ask them some questions to determine whether they were able to claim their child as a dependent in 2004 and again this year.
Just taking a letter from the IRS and doing what they tell you to do is not only lazy, but provides a disservice to your client who is paying you to understand the rules and to apply them properly to their particular situation.Comment
-
Invest in a copy
of The TaxBook and do some serious reading.
I doubt the income alone triggered the letter. How old is the "kid"? Is he a student? Just because he lived with mom doesn't make him a dependent.Last edited by Jesse; 02-12-2006, 02:27 PM.Comment
-
By The way Sue, typing in all upper case is considered yelling.Comment
-
I did not know that thanks for letting me know it>Originally posted by veritasComment
Comment