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Warning
CLICK
AN IMAGE OR READ
Question
or Topic
How
do I prove to the IRS I am the person qualifying for claiming a
dependent?
How
do I prove to the IRS I qualify for the Earned Income Credit?
How
do I prove to the IRS my filing status is correct?
The
Answer
There
is one answer for all three questions-
-
Obtain
support documents from someone other than yourself - There is a list
for you following this section.
-
Gather
canceled checks showing your payments for support and household
expenses.
-
Compile
totals for the expenses that IRS will allow you to include as
support - see the Worksheet
to Determine Support in the list of workpapers to include with your
claim, protest to tax return changes or your original return.
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Gather
the information from other sources, including the dependent, for
support
Related
Topics:
Dependent - Citizenship Test
Dependent Care - Introduction
Dependent Care Credit
Dependent Gross Income Test
Dependent - Joint Return Test
Dependent - Member of Household or Relationship Test
Dependents - Flow Chart Worksheet
Dependents - Multiple Support
Dependents - Divorced Parents
Dependent - Passing On
Dependents Support Test
Dependent Test - Yes & No Flow
Filing Status for Individuals
Birth of A Child
Educational IRA
Education Tax Credits Explained
Earned Income Credit - IF IRS Questions You
Dependent Test Report
Solutions
are dependent upon facts & circumstances, law and the
objectives. These elements vary from one time to another, from one
circumstance to another and from from person or entity to another.
You
will need to gather the information listed below and after that you will
need to complete or have Bob Parrish Complete the following forms:
Dependent - Agreement not to claim
(also consider the Multiple Support Agreement Form 2120)
Worksheet
to Determine Support
Dependents - Support Test (Word Format)
Support
Test for Divorced or Separated Parents
Multiple Support Agreement Form 2120
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Support Explained - Some Hints for you
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Support is the cost of providing
the necessities of life such as:
- food
- clothing
- transportation
- medical and dental care
- lodging.
- education.
- recreation.
-
Recreation, including summer camp, horseback riding,
entertainment and vacation expenses, and
additional club dues attributable to the dependent's use
of club facilities
- child care expenses
- allowances and gifts
- toilet articles, haircuts, permanent waves, bicycles,
and other toys charitable contributions by or for the
dependent
- armed forces dependency allotments and tax exempt
military quarters allowances
- singing, dancing, drama, and
sports lessons
- expenditures made by a parent for a child's wedding
- The IRS has ruled that a car is counted as support,
provided the child receives title to the car. Rev. Rul.
77-282
Support Sometimes Includes Capital Items
Capital items, such as furniture, appliances,
and cars, can count as support, depending on the circumstances.
You buy a $150 television set as a birthday
present for your 12-year-old child. You place it in your
child's bedroom. The support you paid for your child includes
the cost of the set.
You pay $5,000 for a car and register it in
your name. You and your 17-year-old son use the car equally.
Because you own the car and do not give it to your son but
merely let him use it, you cannot include the cost of the car
in your son's total support. However, you can include your
out-of-pocket expenses of operating the car for his benefit.
If you paid expenses, such as food, that do
not relate directly to any one household member, divide the
total by the number of people in the household.
Fair rental value is the amount you could
reasonably expect to receive from a stranger for the same kind
of lodging. In some cases, fair rental value equals rent paid.
To figure support, fair rental value is used in place of:
* rent, or
* the following expenses, in a home you or
the person owned:
* taxes
* interest.
* depreciation.
* paint.
* insurance.
* utilities.
* cost of furniture, appliances, etc.
Sources of money spent for support include:
* Wages and salaries.
* If a person provides support from his or
her own wages, that counts as
support the person provided, even if the
person is your child and you paid the wages
* For an Armed Forces dependency allotment,
count both the part the government paid and the part taken out
of military pay as provided by the person in the military.
* Tax-exempt income. Examples include:
* Tax-exempt interest.
* Nontaxable pensions.
* Nontaxable life insurance proceeds.
* Tax-exempt military quarters basic
allowance. Count this allowance as provided by the person in
the military.
* Veterans' benefits, such as tuition and
allowances under the GI Bill.
* Pensions and social security benefits.
* If social security benefit checks are made
out to joint payees, such as your parents, count half the
check as support each one provided, unless they can show
otherwise.
* If your child received social security
benefits and used them for his or her own support, count them
as support your child provided.
* Savings.
* Payments, such as for food, taxes,
housing, etc., that you make for someone else. Treat these
amounts as support you provided.
* Borrowed money, even if the money is paid
back in a later year.
* Credit card purchases, even if the bill is
paid in a later year.
* Medical insurance premiums paid, including
those for supplementary Medicare coverage.
* Support that the state provides to the
needy, such as:
* welfare.
* food stamps.
* housing.
WHAT SUPPORT NEVER INCLUDES
Support never includes:
* Medical insurance benefits received,
including basic and supplementary Medicare benefits.
* Federal, state, and local income taxes that
a person pays from his or her own income.
* Social security and Medicare taxes that a
person pays from his or her own income.
* Life insurance premiums.
* Funeral expenses.
* Scholarships that a full-time student
received.
* Survivors' and Dependents' Educational
Assistance payments, even if they are used for the support of
the child who receives them.
* Amounts not spent for support.
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(Facsimile of IRS
Form 886-H)
Name of Taxpayer Tax Identification Number Tax Period(s)
| Name:
Soc Sec Number or Tax Number: |
Please provide appropriate information and documents for the specific tax year(s) shown above, and return
this sheet with your documents in the envelope provided. Please include documents for each dependent listed on line 6c of your tax return and for each qualifying child listed on your Schedule
EIC. Incomplete documents, or documents submitted for the wrong tax year will not be considered. Do not submit more than one copy of any document
PART I EARNED INCOME CREDIT
For each qualifying child listed on the Earned Incoem
Tax Credit Form furnish a copy of;
- Social Security card for you (and your spouse. if filing · joint return).
- Birth Certificate and Social Security card for each child.
- Postal Form 1093. if your address on the tax return was a post office box.
Information needed —
- Name, address and Social Security number of each child's mother and father (if other than you or your spouse).
- List of persons who lived in your household (or with each child) during the tax year. Include name, relationship, Social Security number, and the number of months each person lived with the child
- Dates each child lived with you during the year.
Documents to verify that the child lived with you — Examples of acceptable documents are:
- School records or transcripts or an administrative statement from a school official on school letterhead containing the child's name, address and dates of attendance for the entire tax year and the names and addresses of the child's parents or guardian, or
- A statement on company letterhead or a notarized statement from a child care provider containing the
child's name, address, and data of care for the entire tax year. the name and address of the child's parent or guardian, and the name and taxpayer identification number of the child care provider or
- Medical records or an administrative statement from a health care provider containing the child's name, address, end dates of medical cam during the tax year and the name and address of the
child's parent or guardian.
PART 2 EXEMPTION FOR DEPENDENTS
· Green card (If not a U.S. citizen)
Information needed —
· Statement of relationship of person to you.
Documents Needed —
· If the person warn a student over age 18 and under age 24 on December 31, school records or transcripts containing the person's name, address, and dates of attendance for the tax year.
· It you received any government benefits, a statement from the government agency verifying the amounts and types of benefits received by you, for you and/or your dependents during the tax year.
· If the person was Over age 18 on December 31 and permanently and totally disabled, an official letter
or document indicating that the person is disabled.
Custodial parents and guardians, please submit —
· Copy of your lease or rental agreement your last mortgage statement for the tax year
· Copies of your utility bills (water, electric, telephone, cable, etc.) for the tax year.
· Copies of canceled checks or receipts for rent or mortgage payments and household expenses paid during the tax year.
Non-custodial parents and guardians, please submit —
· Copy of any other written agreement showing which parent has custody.
· Copy of Form 8332, Release of Claim for Dependent, signed by other parent
Divorced and Legally Separated Parents, please submit —
- Copies of your divorce decree or separation agreement.
Include all pages/revisions.
- Copy of any other written agreement showing which parent has
custody.
- Copy of form 8332, release of claim for dependent, signed by the
other parent if applicable.
PART 3 HEAD OF HOUSEHOLD
Please refer to the enclosed Helpful Information on General Requirements for an explanation of the conditions that qualify you for Head of Household filing status, and send the appropriate documents from the list above. However. if the same document can be used to support your claim for the earned income credit or a dependency exemption, do not send more than one copy of that document.
Engagement
Status Letter ~ WARNING!
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