Understanding Dependent Claims in Tax Filing: A Critical Analysis

Dr. Friday Tax Tips
Dr. Friday Tax Tips
Understanding Dependent Claims in Tax Filing: A Critical Analysis
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In this insightful episode of ‘Dr. Friday Tax Tips – One Minute Moment,’ Dr. Friday addresses a common and complex issue in tax filing: the legitimacy of claiming dependents. She highlights a scenario where individuals may mistakenly claim their partner’s children as dependents, emphasizing the importance of understanding the criteria for legitimate dependent claims. Dr. Friday cautions against the assumption that supporting a partner’s children automatically qualifies them as dependents for tax purposes. She underscores the risks involved, including the potential loss of eligibility for earned income credit by the IRS in cases of incorrect claims. This episode serves as a crucial reminder for taxpayers to thoroughly assess their dependent claims to avoid costly mistakes.

Transcript

G’day. I’m Dr. Friday president of Dr. Friday’s Tax and Financial Firm. To get more info go to www.drfriday.com. This is a one-minute moment.

I was reviewing some taxes and one thing I have noticed is sometimes people put on children that may not be legitimate deductions. So your girlfriend lives with you and even though you’re supporting the children are they truly your dependents? That’s a really tough question and it really depends on how long they’ve stayed with you. Have you the only breadwinner in the family? What is the story that just because she didn’t make any money and they put you on as head of household because she now lives with you? Be very careful. If you make a mistake on earned income credit the IRS can stop you from ever collecting earned income credit in the future.

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