Discussion:Child Tax Credit (qualifying child)
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Discussion Forum Index --> Tax Questions --> Child Tax Credit (qualifying child)
| 4 February 2006 | |
| I provide just about 100% support for my nephew. He lives with my sister (her son). She does not have any income so I basically support both of them. I do not live with them (I pay for her rent). Last year's old rule allowed me to claim the child tax credit. This year if I am reading the rules correctly, I cannot claim the child tax credit for my nephew because he doesn't live with me. Is this correct or I am misinterpreting the new rule for a qualifying child? If this is correct, it doesn't make sense that the IRS change the law just because they wanted to simplify the definition for the exemptions, child tax credit etc. Every year the IRS comes up with new regulations to simplify yet it seems to also confuse people. Thanks | |
| 4 February 2006 | |
| I think that you understand the new rules. I agree that almost every tax law change they make means it gets more complicated. It's getting to the point where there is not such thing as a "simple" tax question. Even the most basic tax return has potential pitfalls. | |
| 4 February 2006 | |
| So in order to make a uniform definition by the IRS for who is a qualifying child, I lose out on a $1,000 child tax credit which I use to help support my nephew. Thanks | |
| 4 February 2006 | |
| Just to put the blame in the right place, the fault lies with congress rather than the IRS. | |
| 4 February 2006 | |
| Rossi3839, if your nephew is under the age of 19 (24 if attending school), then your understanding is 100% correct – the support you provide for him is irrelevant.
However, if your sister is over the age of 19 (24 if a student), you may be able to claim the dependency exemption for her (assuming that she has less than $3,200 in gross income). In addition if she is under those ages, and she does not live with another family member, you may be able to claim the child tax credit and dependency exemption for her. | |
| 4 February 2006 | |
| Correction, since your sister does not live with you, the child tax credit would not be availble. | |
| 5 February 2006 | |
| Thank you. At least now I have piece of mind to know that I should not claim the credit. I support my sister also but do not claim her exemption. She was in an accident a couple of years ago and can't work because of various injuries and has a case against the insurance company (she is 45 years old). In addition, she now suffers from anerexia and other problems. She is in the process of appealing a social security denial. I do not claim her even though I am entitled to because I don't want to jeapordize her case. | |
| 5 February 2006 | |
| Well, you can certainly amend your return within 3 years if her Social Security issue is resolved. | |
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