There are tax credits available for money that was used for services such as child care.
Raleigh, NC – There are some people or married couples who can claim other individuals as dependents on their taxes. This means that another person, usually a child or other family member, is dependent on them for things like their basic necessities and various kinds of financial support. Claiming dependents can be important when it comes time to file taxes, as lawyers and other tax professionals can use rules related to dependents to help save money and optimize the tax situation. Here are a few important pieces of information regarding who can be claimed as a dependent and why it is beneficial to do so.
Who is claimed as a dependent?
According to the IRS, there are only a few types of individuals who another can claim as a dependent. Children under 19 years old can always be claimed by their parents as a dependent. This extends until age 24 if the child is a full time student. Certain children who are disabled can be claimed regardless of age. Certain other relatives can qualify as well, but they need to depend on receiving at least half of their financial support from the individual or couple that claims them as a dependent. Those who have other situations where they believe they can claim dependents can speak with Raleigh tax lawyers to see how they should address the matter on their taxes.
What is the value of a dependent?
Children who qualify as dependents are worth up to a few thousand dollars annually in terms of tax credits. Non-child relatives tend to max out at $500. Depending on the tax situation of the individual or family, this can result in a much bigger tax return or substantial savings in terms of what is owed to the government. North Carolina tax lawyers should be contacted by those who have a large outstanding debt or trouble paying their taxes to avoid additional legal consequences.
What is the child and dependent care tax credit?
There are tax credits available for money that was used for services such as child care. Tax lawyers can look at a person’s financial and living situation and advise the client whether this credit can be claimed or not. This credit essentially takes money that was spent on services such as daycare or other forms of care, and allows the person claiming the credit to decrease their tax burden by doing so. This credit generally applies to any dependents who require these kinds of services because they are not self sufficient.
Financial planning for families
Estate planning lawyers can also be a valuable resource for those who have dependents. Setting up a trust, will, or other documentation can help transfer wealth to those who may need it in the future.
Getting in touch with a local lawyer
USAttorneys.com can help people who want various kinds of legal advice anywhere in the country. Those who need to speak with a local attorney can call 800-672-3103 for a referral.
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