- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Do you have to claim dependents on your tax return?
Posted on 2/13/20 at 11:27 am
Posted on 2/13/20 at 11:27 am
I’m a CPA (not in public, haven’t prepped a tax return in years nor am I up to date with the tax code) helping my dad with his tax return.
My sister is in college and meets the requirements to be claimed as a dependent. But my father has too much income to receive and child tax credit for her, or any education tax credits for her.
I suggested that my father not claim her, so that my sister can then claim the American Opportunity Tax Credit, which my father is phased out of receiving. Per my reading of the AOTC requirements on the IRS website, if she is not claimed as a dependent she could claim this. Also, my understanding is my father gets no benefit for claiming her. I cannot find anything that says you MUST claim a dependent if they meet dependent eligibility requirements. Am I missing something, or can my sister claim the AOTC while my father’s tax situation is completely unchanged?
My sister is in college and meets the requirements to be claimed as a dependent. But my father has too much income to receive and child tax credit for her, or any education tax credits for her.
I suggested that my father not claim her, so that my sister can then claim the American Opportunity Tax Credit, which my father is phased out of receiving. Per my reading of the AOTC requirements on the IRS website, if she is not claimed as a dependent she could claim this. Also, my understanding is my father gets no benefit for claiming her. I cannot find anything that says you MUST claim a dependent if they meet dependent eligibility requirements. Am I missing something, or can my sister claim the AOTC while my father’s tax situation is completely unchanged?
3
Posted on 2/13/20 at 2:34 pm to Tigerfan56
For not being in public, you are really spot on here.
The rules are for what you must meet to be able to claim a dependent. it's not mandatory you claim a dependent for which you meet the rules.
Back in the old days (i.e. pre-2018) when we had personal exemptions, between those exemptions phasing out, and those taxpayers who were thrown into AMT (where personal exemptions don't count), we had a few clients that got no net benefit of the dependency exemption.
Some of those clients had kids that were in college. We would haven them file their own tax return, and take the AOTC on their return.
Now, pre-2018 days, they could not claim a personal exemption for themselves (because, again, only the parent met the eligibility, the kid did not) and in many cases, kiddie tax issues came into play. But they could absolutely take the AOTC.
Under today's law, there is no personal exemption, and if you do this, the kid can't claim any family tax credit for herself, but yes, she can claim AOTC.
Great idea. Congrats on that thought.
The rules are for what you must meet to be able to claim a dependent. it's not mandatory you claim a dependent for which you meet the rules.
Back in the old days (i.e. pre-2018) when we had personal exemptions, between those exemptions phasing out, and those taxpayers who were thrown into AMT (where personal exemptions don't count), we had a few clients that got no net benefit of the dependency exemption.
Some of those clients had kids that were in college. We would haven them file their own tax return, and take the AOTC on their return.
Now, pre-2018 days, they could not claim a personal exemption for themselves (because, again, only the parent met the eligibility, the kid did not) and in many cases, kiddie tax issues came into play. But they could absolutely take the AOTC.
Under today's law, there is no personal exemption, and if you do this, the kid can't claim any family tax credit for herself, but yes, she can claim AOTC.
Great idea. Congrats on that thought.
Posted on 2/13/20 at 3:21 pm to LSUFanHouston
Thanks for the response and explanation 
Posted on 2/13/20 at 7:05 pm to Tigerfan56
How old is she?
Only thing I can think of that may be an issue is if she is still on his health insurance as a dependent.
But I’m not an accountant and only thinking out loudly.
Only thing I can think of that may be an issue is if she is still on his health insurance as a dependent.
But I’m not an accountant and only thinking out loudly.
Posted on 2/13/20 at 8:48 pm to hottub
quote:
Only thing I can think of that may be an issue is if she is still on his health insurance as a dependent.
I don’t think this matters. At least I hope not, or else it means I did my taxes wrong when I was fresh out of college
. I was living on my own, working full time, and claimed myself as a dependent around age 24 but I still stayed on my dads health insurance until I was 26 because it was such a better plan than my employer offered.
Posted on 2/14/20 at 9:19 am to Tigerfan56
While divorced I was responsible for my kids health insurance and other expenses, but did not claim them as dependents. I can’t see the IRS ever having a issue with something that results in more taxes collected.
Page 1 of 1
Back to top
Follow TigerDroppings for LSU Football News