Children require a lot of attention. They need plenty of time and energy to be properly supported and cared for. Thankfully, the IRS rewards parents or other individuals that look after a minor with tax breaks.
For parents or other individuals that have claimed a child as a dependant for years, there may be a decent amount of concern about how their taxes will change once the person reaches 18, and thus the definition of adulthood.
Do your taxes change significantly when a kid turns 18?
The IRS has a definition for a dependent known as a “qualifying child”. All it means is that you can claim a dependent on your tax return, and thus receive a much needed break on your taxes—so long as the person falls under the required criteria.
For starters, a qualifying child does not need to be your own child. However, the person does need to be related to you in some manner.
What about when the child is no longer considered a minor and turns 18? In many circumstances, the person can still get claimed as a dependent.
According to the IRS, a qualifying child must meet all six of the following requirements in order to get claimed as a dependent:
If you are able to meet the above criteria, then a person can get claimed as your dependent.
Since most people are reviewing this article for the specific question of how it impacts a child that just turned (or is about to turn) 18, let’s examine the age requirements closer.
A dependent can only be someone that is related to you and under the age of 19 on the last day of the year you are filing for. The person must also be younger than you. However, two exceptions exist:
The IRS does have a few exceptions to the above age requirements that are fairly rare.
One of the most popular is how separated or divorced couples deal with a dependent. It does get complicated when one parent has custody of the child, yet the same child lived with the other individual or received more than half of his or her support from them.
In this event, it is possible for the individual that does not have custody to still claim the child as their own dependent. However, the individual must receive permission from the other partner in order to avoid both claiming the dependent—and both deductions getting negated as a result.
Some separated or divorced couples find common ground by alternating the years they can claim the child.
For more information regarding divorces and separations, and how they impact qualifying children—or for other age requirement exceptions, please contact Levy & Associates Tax Consultants at 800-TAX-LEVY, or www.www.levytaxhelp.com.
Levy & Associates is available for free initial consultations. We’re happy to answer any questions you have about the audit process or address any concerns about your specific situation.
There’s never a good time to be audited, and the time-consuming process will take away from your business or family if you try to face it alone. Let us handle and coordinate communication, so you can return to your daily life.