Tax preparation can be complicated. Part of the confusion comes from the many deduction categories and determining which ones are applicable to your situation. We are often able to help our clients identify deductions they didn’t realize they were eligible for. One area where this tends to be unique, however, is the section on dependents.
Most people do not “overlook” dependent deductions. Instead, they try to claim non-dependents as a deduction. A few examples we have seen, include: pets; a friend living with family; a neighbor who divorced and lives with family; a sibling’s children because the sibling can’t claim the kids. Dependent deductions can save you a lot of money on your taxes, but it’s important you get it right.
There are two classes of people who can qualify as dependents: qualifying children and qualifying relatives. If you’re unsure whether or not someone qualifies, let us know. We can discuss your situation in more detail to determine which dependents can be claimed on your tax return.
Of course, there many exceptions that may impact dependent deductions. One that’s worth pointing out is related to qualifying children. Generally speaking, you can claim an exemption for your child under age 19, but full-time students may be claimed as dependents until the age of 24. Those additional years can be significant!
Questions about deductions or anything else related to your income taxes? Call us at (913) 888-9100.
Richard Adams is a graduate of Benedictine College in Atchison, Kansas, with dual majors in Accounting and Business Administration. He is also a graduate of Wentworth Military Academy in Lexington, Missouri.