Discussion:Form 8901
From TaxAlmanac
Discussion Forum Index --> Tax Questions --> Form 8901
| 29 December 2005 | |
| Hit the wrong key. Form 8901 is used by a taxpayer to claim child tax credit for a non-dependent. Given the rules for claiming child tax credit, what would be a scenario in which a taxpayer could claim the credit for a non-dependent. | |
| 29 December 2005 | |
| This is explained in detail in IRS Pub 17 which can be downloaded in PDF format from the IRS site.anuenue | |
| 29 December 2005 | |
| I have Pub 17 in hard copy. The child tax credit section says nothing regarding the question I posed. What page number in 17 explains this in detail. | |
| 3 January 2006 | |
| Divorce-- where one ex spouse releases the exemption to the other ex spouse. | |
| January 3, 2006 | |
| The Form 8901 downloaded from the IRS website has the instructions and a taxpayer can take the Child Tax Credit if they don't take the exemption only in these two limited cases:
1. You, or your spouse if filing jointly, can be claimed as a dependent on someone else’s 2005 return. 2. Your qualifying child is married and files a joint return for 2005 (unless that joint return is filed only as a claim for a refund and no tax liability would exist for either spouse if they had filed separate returns). By the way, DZCPA, divorce doesn't qualify, in that case the credit goes with the exemption. I was just reviewing all these rules right before I read this forum post. :) | |
| 3 January 2006 | |
| Usually happens to divorced parents. This is what I referred to:Does the Form 8332 (used to release the exemption to the noncustodial parent) affect the Child Tax Credit?
Yes. The Child Tax Credit can only be claimed by the parent claiming the exemption. In this case the noncustodial parent would qualify for the dependency exemption and therefore the child tax credit. Please refer to the Form 1040 Instructions or the Form 1040A Instructions index for Child Tax Credit. The referenced pages will explain who qualifies for this credit, and how to calculate it.
Form 1040 Instructions Form 1040A Instructions Publication 17, Your Federal Income Tax Publication 972, Child Tax Credit Tax Topic 606, Child Tax Credit | |
| 4 January 2006 | |
| Interesting question, I believe that an individual claimed as a dependent may not claim dependents on his own return, but may claim the child tax credit on a qualifying child. Also, an individual who files a joint return cannot be claimed as a dependent, but may qualify as a qualifying child for purposes of the child tax credit. Also, I believe that a dependent who is a resident and citizen of the Canada or Mexico can qualify as a dependent, but would not qualify as a qualifying child for purposes of the child tax credit unless the child is either adopted or in the process of being adopted. | |
