Finally, a child is a child, is a child in 2005

By: Robert Johnson

Beginning with your 2005 tax return there is now a proper and true definition of a qualifying child. This enables taxpayers to be able to claim child exemptions and credits properly. The definition of child for tax purposes will now include 4 criteria that must be met to enable the taxpayer to take any child related credits or deductions. There is even series of tiebreaker situations that will ensure that all taxpayers are able to distinguish which of their dependents can qualify as a child if they are filling out a 2005 tax form.

A qualifying child can be used as a deduction whether you fill out a 2005 tax online or file a standard 2005 tax form. Prior to the 2005 tax ruling, it was sometimes difficult to establish a proper qualifying status for some dependents in the household. This new ruling will not change any dependent status on a prior tax return.

If you are filing 2005 taxes and are looking for deductions, it may benefit you to look carefully at what the definition of a qualified child is now defined as being in regard to tax rulings. Should there be any questions, you can always seek the assistance of qualified tax preparers so that you do not hesitate on your tax filing and send in a late 2005 tax return.

A qualifying child for tax purposes will meet the following requirements:

• Relationships — the person must be the child, stepchild, adopted child, foster child, or minor brother /sister of the taxpayer; or a related descendant through one of these relationships.

• Residences — the person must also have the same established, physical residence as the taxpayer. The person must have lived there over one-half of the year for which the taxes are filed.

• Ages — the person should be under 19 years of age at the end of the tax year if they are not a full time student. If they are a full time student for at least 5 months of the year, or are permanently and totally disabled the age limit is increased to 24 years of age.

• Support — the person must not have been provided over 50% of their own support during the year.

• Tie-Breaker Tests If the child deduction is being claimed by more than one person it is given to the taxpayer who is

• The parent of the child

• The person that the child lived with the longest time during the year… If the time of residence is split equally between two or more people, the deduction is given to the person with the highest AGI.

• The person with the highest AGI, if there is no parent involved.