IRS rules prohibit parents from effectively "splitting" a dependent. Only one of them can claim a child as a dependent per year. Some parents with multiple children do "divide" them at tax time, however, with one parent claiming one child and the other parent claiming the other, and this...
If your business claims a net loss for too many years, or fails to meet other requirements, the IRS may classify it as a hobby, which would prevent you from claiming a loss related to the business. If the IRS classifies your business as a hobby, you'll h
If you've purchased property to use in your business, you can deduct a portion of your costs by claiming a depreciation deduction and reporting it on IRS Form 4562.
IRS outlines new rules for claiming charitable deductions for 2007ASSOCIATED PRESS
for claiming dependents on your tax return. By understanding these rules, you can determine whether you are eligible to claim someone as a dependent and potentially benefit from valuable tax credits, deductions, and exemptions. Here are the key steps to follow when claiming dependents under Code ...
To an ordinary, law-abiding citizen, the lengthy process involved in declaring and paying taxes is a nuisance at its worst. However, those who attempt to circumvent or outright break the rules to avoid paying their dues to Uncle Sam are the ones who truly fear this organization. ...
General Requirements for Dependents Some IRS dependent rules apply to all individuals. Video of the Day You must be a citizen or resident alien of the United States, a U.S. national or a resident of Canada or Mexico for someone to claim you. ...
I get asked this question a lot every tax season and the answers is usually, “it depends.” The processing engine is similar across most of them (after all tax rules are the same for all) but they do differ on usability, premium features and availability of “live...
"willfulness." That means you have to know that you're breaking the law to be guilty of fraud. Without willfulness, improperly claiming a dependent may be considered an act of negligence. Negligence can be penalized —- it's your responsibility to know the rules — but it's not a ...
To determine if someone can be considered a qualifying relative, the IRS focuses on four key factors: Relationship:The person must either have a blood relationship or be a member of your household for the entire year. This opens up the possibility of claiming individuals such as close friends ...