Family

  • Child Tax Credit
  • Filing Status
  • Dependents
  • Itemized Deductions
  • Divorce
  • IRS tax Information
  • Home Equity Loan Tax Deductions
  • Medical Expenses
  • Retirment
  • Mileage Deductions
  • Address Change

 

Child Tax Credit-  

The maximum amount you can claim for the credit is $2,000 for each child who qualifies you for the CTC, year 2020.

 

 

Qualifying Relative

 

 

Five Filing Status: 

Filing Status Check only the filing status that applies to you. The ones that will usually give you the lowest tax are listed last.

  • Married filing separately.
  • Single.
  • Head of household.
  • Married filing jointly.
  • Qualifying widow(er).

Dependents:  A dependent is qualifying child or a qualifying relative. You are allowed one exemption for each person you can claim as a dependent.

A Qualifying child or a Qualifying relative must be a U.S. citizen. or a resident of the U.S., Canada, or Mexico. and if married, must not file a joint return unless filing only to get a refund and a tax liability does not exist for either filer.  If you (or your spouse if filing jointly) can be claimed as a dependent on someone else’s return  you cannot claim anyone as a dependent.

 

Filing Requirements:

IF your filing status is . .

AND at the end of 2020 you were* . . .

THEN file a return if your gross income** was at least . .

Single

under 65.

65 or older

$12,400

14,050

Married filing jointly**

under 65 (both spouses) 65 or older (one spouse) 65 or older (both spouses)

$24,800

26,100

27,400

Married filing separately

any age

$5

Head of household

under 65 65 or older

$18,650

20,300

Qualifying widow(er)

under 65 65 or older

$24,800

26,100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2016 Standard Mileage Rates for Business, Medical and Moving Announced.

 

 

 

 

Home Equity Loan Tax Deductions: If you took the loan out to buy a second home or to improve your home. If you are able to deduct your home equity loan interest, add that amount to your Schedule-A. The interest on most home equity loans is tax deductible.

 

Retirement: Individual Retirement Arrangements (IRAs)

Preparing for your future may help at tax time. View our IRA Guide for more detailed information.

  • You may be eligible to contribute up to $5,500 ($6,500 if age 50 or older) a year to a traditional IRA. All or part of the contribution may be deductible. This money grows tax-free until withdrawn, and then the deductible contributions and earnings are taxed. If the money is withdrawn early, it becomes taxable as income and may be subject to 10% additional tax.
  • You may be eligible to contribute up to $5,500 ($6,500 if age 50 or older) a year to a Roth IRA. None of the contribution is deductible. This money grows tax-free and qualified distributions can be withdrawn tax-free. If the money is withdrawn early, the interest earned becomes taxable as income and may be subject to 10% additional tax.
  • If money is withdrawn from an IRA prior to age 59½, an additional 10% tax is assessed unless certain exceptions are met (example: buying a home for a first-time home buyer, or withdrawing to pay for qualified education or medical expenses)

Address Change: You need  to notify the Internal Revenue Service if you changed your home mailing address. If this change also affects the mailing address for your children who filed income tax returns.

 

Divorce: Many things may change after a divorce, especially when it comes to your taxes.

  • For tax purposes, if you are divorced or legally separated as of December 31, you are considered to be unmarried for the entire year.
  • If divorced or legally separated, your filing status is single unless you qualify to file as head of household.
  • The custodial parent, or the parent with whom a dependent child lives, does not lose the head of household filing status by allowing the non-custodial parent to claim the exemption for a dependent child.
  • When newly divorced, be sure to change your Form W-4, Employee’s Withholding Allowance Certificate, to reflect your new filing status. If your name has changed, be sure to notify the Social Security Administration (SSA) as well. The IRS will delay processing your tax return if the name does not match what the SSA has in their files.