Description:

This book is for preparing 2021 taxes. Children of all ages come with a lot of costs. Whether it’s diapers or school supplies, raising a child can be more expensive than parents even realize. However, there are a few tax credits beneficial to parents that all tax pros need to know of to get their clients the maximum refund. This textbook examines a variety of tax issues involving children ranging in age from 0 to 27. Topics include tax credits available to taxpayers with dependent children, dependency exemption applicability, kiddie tax rules and tax benefits for qualified education expenses. This book will help you prepare forms for Form 1040.

View Table of Contents.

Topics include:

• Applying the dependency rules for a child
• Identifying when a child is subject to kiddie tax, which tax rate applies and how it is reported
• Determining how inheritances, court settlements and Social Security income impact a child’s reporting requirements
• Defining the tax credits available to taxpayers with dependent children
• Calculating the expanded child tax credit, including the other dependent credit
• Summarizing the requirements to claim education credits
• Determining the tax consequences of distributions from qualified tuition programs (§529 plans)
• Identifying the effects of COVID-19 relief legislation on taxpayers with children

Product Details:

Item Number: 21333

Level: Intermediate

Authors: NATP Staff

Published: 2021

Format: Print - 148 Pages

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