Question:  How much does an unmarried dependent student have to make before he or she has to file an income tax return? Answer: If you are an unmarried dependent student, you must file a tax return if your earned and/or unearned income exceeds certain limits. To find these limits refer to  Who Must File, Dependents  in  Publication 501 ,  Exemptions, Standard Deduction and Filing Information . Even if you do not have to file, you should file a federal income tax return if you can get money back (for example, had income tax withheld from your pay; you qualify for the earned income credit; you qualify for the additional child tax credit). See Who Should File in  Publication 501 ,  Exemptions, Standard Deduction and Filing Information,  for more examples. Additional Information: Tax Information for Students Publication 501, Exemptions, Standard Deduction, and Filing Information Santander Tax Service  ☎ (805...

Is there an age limit on claiming my child as a dependent? Answer: 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: Qualifying child or qualifying relative test Dependent taxpayer test Citizenship or resident test Joint return test http://www.irs.gov/publications/p501/index.html Santander Tax Service  ☎ (805)705-8572  

Claim your American Opportunity Tax Credit. The American Opportunity Tax Credit was a centerpiece of the 2009 stimulus bill. The new education tax break expanded the existing Hope Credit, providing a credit of up to $2,500 of the cost of qualified tuition and related expenses, and up to $1,000 of the credit could come back to the taxpayer as a refund. The American Opportunity Credit was originally supposed to end in 2010, but it was extended through 2012. However, this could be the credit's last year. Congress is looking for ways to cut the federal deficit, and allowing tax breaks to expire is an easy way to save some dollars. If you have eligible education expenses, be sure to claim the American Opportunity Credit while you can. Note health care info on W-2 When you get your 2012 W-2, you might notice some new information on the form. Box 12 is where employers will report the cost of your workplace's group health insurance coverage. This amount is both the amount th...

Número de Identificación Personal del Contribuyente (ITIN) Información General sobre el ITIN ¿Qué es un ITIN? ¿Para qué se usa el ITIN? ¿Quién necesita un ITIN? ¿Cómo sé si necesito un ITIN? ¿Cómo solicito un ITIN? ¿Cuándo debo solicitar un IITN? ¿Dónde puedo obtener ayuda con mí solicitud de ITIN? ¿Cómo y cuándo puedo esperar recibir mí ITIN? Requisitos Revisados Para Solicitar un ITIN ¿Cuáles son los requisitos revisados para solicitar un ITIN? ¿Por qué cambio el IRS de una tarjeta de ITIN a una carta de autorización? ¿Por qué reviso el IRS el proceso de solicitud de ITINs? ¿Qué documentos son aceptables como prueba de identidad y estado de extranjero?       Información adicional sobre los ITIN ¿Cómo solicito un ITIN desde el extranjero? ¿Son válidos los ITIN cómo documento de identificación? ¿Son válidos los ITIN para trabajar? ¿Se pueden utilizar los ITIN como prueba de identificación para obtener una lice...

A “ Qualifying Child ” FS-2005-7, January 2005 Uniform Definition A “qualifying child” may enable a taxpayer to claim several tax benefits, such as head of household filing status, the exemption for a dependent, the child tax credit, the child and dependent care credit and the earned income tax credit. Prior to 2005, each of these items defined a qualifying child differently, leaving many taxpayers confused. The Working Families Tax Relief Act of 2004 set a uniform definition of a qualifying child, beginning for Tax Year 2005. This standard definition applies to all five of the tax benefits noted above, with each benefit having some additional rules. In general, to be a taxpayer’s qualifying child, a person must satisfy four tests: Relationship — the taxpayer’s child or stepchild (whether by blood or adoption), foster child, sibling or stepsibling, or a descendant of one of these. Residence — has the same principal residence as the taxpayer for more than half the tax year...

Income tax basics While U.S. income tax law is very complex, the underlying idea is relatively easy to understand. Simplifying greatly, gross income is all income from all sources less any exclusions. An exclusion is something that Congress has effectively said a taxpayer need not include in his or her income for tax purposes, such as employer-paid health insurance or interest from tax-exempt bonds. For individuals, Adjusted Gross Income (AGI) is gross income less any above-the-line deductions. Above-the-line deductions are listed in § 62 and include trade or business deductions, alimony , and moving expenses . Taxable income is AGI less itemized deductions or the applicable standard deduction, whichever is greater, and a deduction for any allowable personal exemptions for the taxpayer, the taxpayer's spouse (if filing jointly), and the taxpayer's dependents. (In certain cases involving higher income taxpayers, the allowed personal exemptions may be reduced or even elimin...