The IRS continues to publish guidance to clarify provisions of the Tax Cuts and Jobs Act (TCJA). Here’s what you need to know about qualifying for the new $500 tax credit for dependents and beneficial head of household (HOH) filing status based on having a non-qualifying-child dependent. Read more
As life expediencies continue to increase, it becomes much more likely that you will need to financially help an aging parent. If you find yourself in that situation, review the tax laws to determine whether you can obtain some tax relief.
The key is to determine whether you can deduct your parent as a dependent, which entitles you to an additional personal exemption on your tax return, reducing your taxable income by $4,050 in 2017 (unchanged from 2016). To do so, your parent’s gross income can’t exceed the exemption amount and you must provide over half your parent’s support. For purposes of the gross income test, Social Security benefits typically aren’t considered. Read more