​Professional Income Tax

Earned Income Tax Credit (EIC)

​IRS Required Documentation for Proof of a Qualifying Child

  • School Records and Statements
  • Landlord or Property Management Statement
  • Health Care Provider Statements (1095-B ,1095-A , & 1095-C)
  • Medical Records
  • Placement Agency Statements
  • Social Security Card (Actual Document)
  • Birth certificate (Actual Document or Certified Copy)
  • Statement of Guardianship
  • Employer Statement

These documents have been deemed NECESSARY by the IRS for providing proof that a child is eligible to be considered your qualified child. Professional Income Tax will be collecting at least 2 of the 11 stated documents as copies in compliance with the IRS.

What are qualified education expenses? And when can I file?

There are a number of education credits and deductions, including the American Opportunity Credit, which was extended through 2015. It benefits full-time and part-time college students with a maximum $2,500 credit per student, based on income requirements.

Who can I claim as a dependent?

Information You Will Need:

  • Marital status, relationship to the dependent, and the amount of support provided
  • Basic income information such as your adjusted gross income
  • If no person supplied more than half of the potential dependent's support, the terms of any multiple support agreement you may have


To qualify for head of household filing status, do I have to claim my child as a dependent?
In certain circumstances, you do not have to claim your child as a dependent to qualify for head of household filing status; for example, a custodial parent may be able to claim head of household filing status even if he or she released a claim to exemption for the child.

What is Taxable or Non-Taxable Income?
Although most income you receive is taxable and must be reported on your federal income tax return, there are some instances when income may not be taxable.

The IRS offers the following list of items that do not have to be included as taxable income:

  • Adoption expense reimbursements for qualifying expenses
  • Child support payments
  • Gifts, bequests and inheritances
  • Workers' compensation benefits (some exceptions may apply; see Publication 525, Taxable and Nontaxable Income)
  • Meals and lodging for the convenience of your employer
  • Compensatory damages awarded for physical injury or physical sickness
  • Welfare benefits
  • Cash rebates from a dealer or manufacturer

What is the eligibility for the child tax credit?
You can claim an additional $1,000 credit for each dependent child under the age of 17 if you meet income and support tests.

If I claim my daughter who is a full-time college student as a dependent, can she claim her own personal exemption when she files her return?
If you can claim an exemption for your daughter as a dependent on your income tax return, she cannot claim her own personal exemption on her income tax return. Your daughter should check the box on her return indicating that someone else can claim her as a dependent.

What are some other education credits available?
In addition to the American opportunity credit mentioned above, the lifetime learning credit helps with expenses related to post-secondary education, even if it's not a four-year program and can be worth a credit as much as $2,000.

Is there an age limit on claiming my child as a dependent?
To claim your child as your dependent, your child must meet the qualifying child test or the qualifying relative test.

To meet the qualifying child test, your child must be younger than you and as of the end of the calendar year, either be younger than 19 years old or be a student and younger than 24 years old, or any age if permanently and totally disabled. 
There is no age limit on claiming your child as a dependent if the child meets the qualifying relative test.
In addition to meeting the qualifying child or qualifying relative test, you may claim a dependency exemption for your child as long as all of the following tests are met:

  • Dependent taxpayer test
  • Citizen or resident test, and
  • Joint return test



What is the earned income tax credit and how do I claim it?
This question is also a frequent question for hard times, but many low- and middle-income filers are not familiar with this credit. Some families believe they don't make enough to file their taxes, but taxes must be filed to get this credit, which may help a family with three dependents receive a credit worth up to $5,891.

Are unemployment benefits taxable?
Yes, unemployment income is taxable income.

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