The rules determining a qualifying dependent can be complex and often confusing. This can be complicated for you if your clients are separated, divorced or have another family dynamic because there are many different aspects to consider.
Below, you’ll find a few of the top questions from a recent webinar on the topic and their accompanying answers. If you choose to attend the on-demand version of this webinar, you can access the full recording and the entire list of Q&As.
Q: What documents are acceptable as proof of a child’s residency?
A: School, doctor, dentist or other records that show the child lived at that residence.
Q: Do Social Security benefits count as income for the support test?
A: Social Security benefits do not count toward the gross income test; however, they are considered when determining support.
Q: Can a divorce decree declare a custodial parent regardless of the number of nights?
A: No. However, if a parent violates the divorce decree, the other parent can take legal action. Tax rules are not dependent on the divorce decree.
Q: For divorced parents, what happens if the child spends an equal number of nights with both parents but also spends two weeks at sleepover camp?
A: The two weeks at sleepover camp count toward the parent who would have had the child during those nights had the child not gone to camp.
To learn more about identifying qualifying dependents and qualifying relatives, you can watch our on-demand webinar. NATP members can attend for free, depending on membership level! If you’re not an NATP member and want to learn more, join our completely free 30-day trial.
About National Association of Tax ProfessionalsThe National Association of Tax Professionals (NATP) is the largest association dedicated to equipping tax professionals with the resources, connections and education they need to provide the highest level of service to their clients. NATP is comprised of over 23,000 leading tax professionals who believe in a superior standard of ethics and exemplify professional excellence. Members rely on NATP to deliver professional connections, content expertise and advocacy that provides them with the support they need to best serve their clients. The organization welcomes all tax professionals in their quest to continually meet the needs of the public, no matter where they are in their careers.
The NATP headquarters is located in Appleton, WI. To learn more, visit www.natptax.com.
Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing.