Claiming dependents on your taxes can get tricky on your tax return, especially if dependents are children and the parents are separated or divorced. But like with many things in life, communication is key. So, here are a few tips to make sure that your tax return appointment will go smoothly.
1. Residency.
Residency must be proven before we will file your return. The IRS is cracking down on fraud, and the lack of proof of residency could trigger huge fines for those involved. Getting proof should be relatively painless - you just need some kind of documentation showing the dependent's name and your current address to prove that the dependent lives with you. Here are some documents that you might have around the house or access to online that could be used as proof:
» Report card
» Birth certificate or Social Security postcard (for newborns)
» Healthcare letter or bill
» A statement from your childcare provider (they are required send it every year)
Any document you use as proof that the dependent lives with you must be recent - generally anything after June of the previous year should work fine - and it must show your current address and the dependent's full name.
► RECENTLY MOVED: If you do not have any documentation with you and your dependent's current address, documentation with your previous address will be fine.
► If these options don't work out for you, you might consider setting up a savings account in your dependent's name. The monthly bank statements will have your dependent's name and current address, and can be used as proof of residency!
► College-aged children: We do not generally require proof of residency for children in college, but you might receive a 1098-T which is important to bring to your tax return! The college will have it mailed out to you by January 31st if you qualify for it.
2. I don't have any of those, what do I do?
If you don't have these documents handy, it should be easy to contact the dependent's school, daycare, or doctor's office and ask for a letter (on their letterhead) stating the dependent's name and address in their records, and that the dependent is currently receiving services from that organization. If they don't know what to give you as proof of residency, the IRS has provided templates of letters that your dependent's school, daycare, or healthcare provider can use as a guide.
Although we cannot transmit your return until we have the signed documentation, we can figure up your return during your appointment, and then transmit your return as soon as you get the document to us.
3. Single Parents.
Generally, as long as both parties have an agreement as to how the children will be claimed, nothing else is required; Ken will let you know during your appointment if he does need additional documentation. Occasionally both parents try to claim the children. If this happens to you, your first step should be to communicate with the other parent and ask them to file an amendment. This is the best way to go. If the other parent is non-cooperative, we can talk with you about other avenues we can take to get it fixed.
If you are the parent that needs to file an amendment, we can help you with that, too!
4. Adult Dependents.
Generally, we do not require documentation to prove that you support an adult dependent. However, if you are audited by the IRS you will have to provide supporting documentation that you provide at least 50% of the living expenses of the adult dependent.
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If you have any other questions about claiming your dependents, we will be happy to discuss it at your appointment! Any documentation can be emailed, faxed, or hand-delivered after our initial appointment if it is needed. Book your free consultation or service appointment online: www.pelicantaxservices.com/appointment
And don't forget to review our checklist of information and documents you might need to bring to your appointment!
www.pelicantaxservices.com/blog/what-to-bring
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