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Is there an age limit on claiming my child as a dependent?

Age is a factor in the qualifying child test, but a qualifying relative can be any age. As long as the following tests are met, you may claim a dependency exemption for your child:

1. Qualifying child or qualifying relative test
2. Dependent taxpayer test
3. Citizenship or resident test
4. Join return test

My son was born on December 31st. Can I claim him as a dependent? If so, will he be also qualified for the Child Tax Credit?

If your child was born alive during the year, and the dependency tests are met, you may take the full exemption. You may be entitled to a Child Tax Credit for him. Please refer to Publication 501 - Exemptions, Standard Deduction and Filing Information. Refer to the Form 1040 Instructions for information about the Child Tax Credit.

If the noncustodial parent receives permission from the custodial parent to claim a child on his or her tax return, is the noncustodial parent eligible for the earned income credit?

No. The noncustodial parent cannot claim the earned income credit on the basis of that child because the child did not live with that parent for more than half of the tax year, and therefore does not meet the residency test.

The custodial parent may be able to claim the earned income credit if all the other requirements are met.

For head of household filing status, do you have to claim a child as a dependent to qualify?

In certain circumstances, you do not have to claim the child as a dependent to qualify for head of household filing status; for example, a custodial parent may be able to claim head of household filing status even if he or she released a claim to exemption for the child.

My wife and I are married filing separately. We both contributed to the support of our son. Can we both claim a dependency exemption for him on our separate return?

A dependency exemption for a child may only be claimed on one return in a tax year.

Can I file as Head of Household if my child's other parent claims the dependency exemption for him?

You can file as head of household even though you do not claim an exemption for your child if you meet all of the following requirements:

1. You are unmarried or considered unmarried on the last day of the year
2. You paid more than half of the cost for the year of keeping up a home for you and your child
3. Your child is your qualifying child for purposes other than the dependency exemption and the child tax credit

What types of educational expenses are deductible?

Deductible educational expenses include:
Amounts spent for tuition, books, supplies, laboratory fees and similar items.
Transportation and travel expenses to attend qualified educational activities may also be deductible.
For more information, refer to Publication 970, Tax Benefits for Education.
For work-related education expenses, refer to Tax Topic 513, Educational Expenses.

Can I deduct separate maintenance paid to my spouse or alimony paid to my former spouse?

If you are separated or divorced, you may generally deduct payments of separate maintenance or alimony paid in cash (including check or money order payable on demand) to, or on behalf of, your spouse or former spouse. See Publication 504 for help in determining whether the payments qualify.

Is interest on a home equity line of credit deductible as a second mortgage?

You may deduct home equity debt interest, as an itemized deduction, if all the following conditions apply:

1. You are legally liable to pay the interest
2. You pay the interest in the tax year
3. The debt is secured with your home
4. The total amount of the home equity indebtedness does not exceed the fair market value of the home (at the time the debt was incurred) and does not exceed $100,000

Can I receive a tax refund if I am currently making payments under an installment agreement or payment plan for a prior year's federal taxes?

No. As a condition of your installment agreement, any refund due to you in a future year will be applied against the amount that you owe.

The IRS will automatically apply the refund to the taxes owed.

You must continue making your installment agreement payments as scheduled and in full because your refund is not applied toward your regular payment, and therefore any payments due under the installment agreement must still be made in full.

Regardless of whether you are participating in an installment agreement or payment plan with the IRS, you may not get all of your refund if you owe certain past-due amounts, such as federal tax, state tax, a student loan, or child support. For more information you can contact Financial Management Service (FMS) toll-free at 800-304-3107.

Are child support payments deductible by the payer or can the payer claim an exemption for the child?

Child support payments are neither deductible by the payer nor taxable income to the payee.

The payer of child support may be able to claim the child as a dependent. The parent with whom the child lived for the greater part of the year is the custodial parent. Generally, the child is the qualifying child of the custodial parent, and the custodial parent is allowed an exemption for the child if the other dependency tests are met.

The noncustodial parent may claim an exemption for the child if the custodial parent signs a Form 8332 (PDF), Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent, or a substantially similar statement, and the noncustodial parent attaches it to his or her return.

Can federal income tax refunds be offset for past due child support?

Yes, federal law allows for offsets of federal income tax refunds on past due support owed. The Federal Tax Refund Offset Program collects past due child support from the tax refunds of parents who have been ordered to pay child support. This program is a cooperative effort between the Internal Revenue Service (IRS), the Federal Office of Child Support Enforcement (OCSE), and the state's child support office, the Division of Child Support Enforcement (DCSE).

Why is tax refund money that is owed to the State paid first before money that is owed to the family?

Federal distribution rules require that money received through federal tax intercept be applied first to arrears owed the state. If any child support arrearages are owed to the state for assistance payments made to the family, that money has to be repaid first before money that is owed to the family is repaid.

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