Dependency Detectives

Learning Objectives

• To analyze qualifications for claiming dependents either as Qualifying Child or Qualifying Relative.
• To explore requirements and implications of dependent-related filing statuses.
• To discuss dependent-related credits and deductions.

Course Description

I knew he was in trouble the minute he walked through the door of the office I shared with my partner, CPA Sam Spade. 

“I need your help, miss…” he stammered. 

“It’s Agent. Enrolled Agent Nora Charles. 

What seems to be the trouble?” 

He laid out the sordid details: his girlfriend has a kid, she isn’t going to claim him on her tax return, and wants me to put the kid on his. It seemed like a simple enough request, but something didn’t smell right, and I’d been in the business long enough to know that these things were never as simple as they seemed. I knew I was going to have to dig deep into this one, and my client might not like what I find. But hey, that’s the job.

We’re on the case to solve the mysteries of dependency in this CE/CPE tax webinar with an in-depth investigation into common (and uncommon) dependency situations.

If you have a family, you need to know how the IRS defines “dependents” for income tax purposes.

Why?

Because it could save you thousands of dollars on your taxes. 

For tax years before 2018, for every qualified dependent you claim, you reduce your taxable income by the exemption amount, equal to $4,050 in 2017. This adds up to substantial savings on your tax bill.

For tax years 2018 through 2020, exemptions have been replaced by an increased standard deduction, a larger Child Tax Credit, and a bigger Additional Child Tax Credit, as well as a new tax Credit for Other Dependents, which is worth up to $500 per qualifying dependent.

For your 2021 tax return that you will prepare in 2022, the Child Tax Credit is expanded by the American Rescue Plan raising the per-child credit to $3,600 or $3,000 depending on the age of your child. The credit is also fully refundable for 2021.

This CE/CPE Tax Course will also discuss these dependent-related credits and deductions. 

Major topics included: 

• Why is claiming a dependent so desirable?
• Dependents What are they Made of?
• Qualifying Child, Qualifying Relative, Adopted and Foster Children, Joint Returns, and Filing for Refunds
• Age Test and “Full-Time Student”
• Residency and Exceptions
• QR and Gross Income
• Head of Household
• Unmarried for Tax Purposes
• The Curious Case of the Qualifying Widow
• Child Tax Credit, Other Dependents, and Earned Income Tax Credit
• Child and Dependent Care Credit
• Due Diligence

Overview

• The game is Afoot!

  7 mins
• Qualifying relative

  16 mins
• Age test and "Full-time student"

  23 mins
• Residency and exceptions

  28 mins
• QR and gross income

  36 mins
• The curious case of the qualifying surviving spouse

  48 mins
• Child tax credit

  53 mins
• Earned income tax credit

  59 mins
• Due diligence

  80 mins