Who is a child in the eyes of the IRS? Tax Tip of the Week

Everyone knows a child when they see one. Right? Not so fast.... Let's look at how the IRS has recently clarified the definition of a Qualifying Child?:

• To be the taxpayer’s qualifying child, the child must be younger than the taxpayer unless the taxpayer’s qualifying child is disabled within the meaning of I.R.C. 152(c)(3)(B).
• A child cannot be a qualifying child if he or she files a joint return unless it is filed only to claim a refund.
• If the parents of the child can claim the child but choose not to, no one else can claim the child as a qualifying child unless that person’s AGI is higher than the highest AGI of any parent of the child.
• A child is only a qualifying child for the purposes of the child tax credit if the taxpayer can and does claim an exemption for him or her.

These are just the new rules.  To see the complete set of rules of determining a Qualifying Child refer to this flowchart.Confused?  Give us a call.As always, give us a call if you have any questions. In Dayton, call 937-436-3133 and in Xenia, call 937-372-3504. Or visit http://www.bradstreetcpas.com.Rick Prewitt - the guy behind TTW...until next week.