Is there an an advantage to have a child file income tax
separately claiming gift money and tuition as income? Thanks.
D L <
Is there an an advantage to have a child file income taxGifts are almost never taxable income. And for children under 18, or
separately claiming gift money and tuition as income? Thanks.
those in college and under 24, if they have unearned income (for
example you give them business equipment and lease it back) it's taxed
at the parent's tax rate anyway.
Whatever you are planning, it's unlikely to work the way you think it
would. You should contact a tax professional (CPA or Enrolled Agent)
to discuss your needs.
--
Stu
http://DownToEarthLawyer.com
Is there an an advantage to have a child file income tax separately claiming gift money and tuition as income? Thanks.
On Saturday, April 17, 2021 at 8:05:32 AM UTC-7, Stuart O. Bronstein wrote:stimulus checks. So, if the children file separately and they include gift money and tuition as income, will they qualify for the stimulus due to lower incomes. Of course, the parents have to amend their return. Thanks.
D L <
Is there an an advantage to have a child file income taxGifts are almost never taxable income. And for children under 18, or
separately claiming gift money and tuition as income? Thanks.
those in college and under 24, if they have unearned income (for
example you give them business equipment and lease it back) it's taxed
at the parent's tax rate anyway.
Whatever you are planning, it's unlikely to work the way you think it
would. You should contact a tax professional (CPA or Enrolled Agent)
to discuss your needs.
--
Stu
http://DownToEarthLawyer.com
Thanks for the response. My friend sent anther post but it is not posted here yet. The idea is that the two children who are 17 and 19 were included as dependents on the 2020 income tax with an AGI above the stimulus limit. The children want their
On 4/17/2021 5:02 PM, D L wrote:stimulus checks. So, if the children file separately and they include gift money and tuition as income, will they qualify for the stimulus due to lower incomes. Of course, the parents have to amend their return. Thanks.
On Saturday, April 17, 2021 at 8:05:32 AM UTC-7, Stuart O. Bronstein wrote:
D L <
Is there an an advantage to have a child file income taxGifts are almost never taxable income. And for children under 18, or
separately claiming gift money and tuition as income? Thanks.
those in college and under 24, if they have unearned income (for
example you give them business equipment and lease it back) it's taxed
at the parent's tax rate anyway.
Whatever you are planning, it's unlikely to work the way you think it
would. You should contact a tax professional (CPA or Enrolled Agent)
to discuss your needs.
--
Stu
http://DownToEarthLawyer.com
Thanks for the response. My friend sent anther post but it is not posted here yet. The idea is that the two children who are 17 and 19 were included as dependents on the 2020 income tax with an AGI above the stimulus limit. The children want their
Gifts are not income. Sounds like that would be fraud.The post is simply to ask if it is allowable. Thanks.
Is there an an advantage to have a child file income tax
separately claiming gift money and tuition as income? Thanks.
Gifts are not income. Sounds like that would be fraud.The post is simply to ask if it is allowable. Thanks.
According to D L <debbie.l...@gmail.com>:
Since it would be tax fraud, no, it is not allowable.The post is simply to ask if it is allowable. Thanks.Gifts are not income. Sounds like that would be fraud.Is there an an advantage to have a child file income tax
separately claiming gift money and tuition as income? Thanks.
--
Regards,
John Levine, jo...@taugh.com, Primary Perpetrator of "The Internet for Dummies",
Please consider the environment before reading this e-mail. https://jl.ly
--
On Sunday, April 18, 2021 at 1:07:11 PM UTC-4, John Levine wrote:That could create a situation where that parent and the two children qualify for the RRC. Be aware, however, that filing MFS can have other consequences that outweigh the benefit from the RRC.
According to D L <debbie.l...@gmail.com>:
Since it would be tax fraud, no, it is not allowable.The post is simply to ask if it is allowable. Thanks.Gifts are not income. Sounds like that would be fraud.Is there an an advantage to have a child file income tax
separately claiming gift money and tuition as income? Thanks.
--There is a solution that might get them the EIP/RRC without filing a fraudulent return. If the parents file a superseding return changing their filing status from MFJ to MFS, the dependents can be claimed on the parent's return with the lower income.
Regards,
John Levine, jo...@taugh.com, Primary Perpetrator of "The Internet for Dummies",
Please consider the environment before reading this e-mail. https://jl.ly --
Ira Smilovitz, EA
Leonia, NJ
ges 17 and 19 as dependentsTo be eligible for the Recovery Rebate Credit (RRC) you can not be a
On 4/17/21 5:01 PM, R C wrote:
ges 17 and 19 as dependentsTo be eligible for the Recovery Rebate Credit (RRC) you can not be a dependent of another taxpayer. Whether or not that taxpayer actually
claims the dependent is irrelevant for the RRC. Dependents claimed or
not claimed are not eligible.
As an aside, the only advantage for not claiming a dependent appears to
be when the taxpayer gets no or very little benefit (deductions and
credits) of the exemption and the dependent child is a college student
with qualified higher education expenses and taxable earned income that
can be offset by the higher education tax credit. The child can claim
the tax credit if the parent does not claim the child.
When a 20-year old college student has earned income during summer internship, and they use it to pay tuition / living expenses - will
that make them independent (single) rather than "dependent of parent"
for tax purposes ?
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