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P. 122
Tax Disasters
valuable tax credit for college. There is no way to fix this. Mr.
F lost over $3,500 and asked his mechutan to pay him back!
Rule #2: Once your children are over 18, claiming them
can become complicated. It is dependent on their age, stu-
dent status, income, residence, support, and possibly mar-
riage status.
It is unfortunate when I see
those who fail to deal with
taxes proactively.
As you can see, it is possible for
a person to waste serious
amounts of money by falling
asleep at the wheel.
Children over 23
Once your children are over 23 they can no longer be
claimed as a child, but they could still be claimed as a qual-
ifying relative. There is a strict income test for this one. If they
exceed $4,050 in annual income, the parent cannot claim
them. Take the following case: A father has a son who turned
24 before the end of the year. The son took a part-time job
in 2016 and earned $4,100. This cost the father the depend-
ency and also the ability to claim college costs, a sum of over
$3,500.
Rule #3: Once children are over 23, they are under a strict
income ceiling to be claimed by the parents. If you want to
claim your child – limit the child’s income.
The Obamacare Credit
People receive a health insurance credit based upon their
income in the previous year. It is assumed they will make the
114 u www.wherewhatwhen.com u
valuable tax credit for college. There is no way to fix this. Mr.
F lost over $3,500 and asked his mechutan to pay him back!
Rule #2: Once your children are over 18, claiming them
can become complicated. It is dependent on their age, stu-
dent status, income, residence, support, and possibly mar-
riage status.
It is unfortunate when I see
those who fail to deal with
taxes proactively.
As you can see, it is possible for
a person to waste serious
amounts of money by falling
asleep at the wheel.
Children over 23
Once your children are over 23 they can no longer be
claimed as a child, but they could still be claimed as a qual-
ifying relative. There is a strict income test for this one. If they
exceed $4,050 in annual income, the parent cannot claim
them. Take the following case: A father has a son who turned
24 before the end of the year. The son took a part-time job
in 2016 and earned $4,100. This cost the father the depend-
ency and also the ability to claim college costs, a sum of over
$3,500.
Rule #3: Once children are over 23, they are under a strict
income ceiling to be claimed by the parents. If you want to
claim your child – limit the child’s income.
The Obamacare Credit
People receive a health insurance credit based upon their
income in the previous year. It is assumed they will make the
114 u www.wherewhatwhen.com u
