Here you will find answers to some of the most common questions about our products. If you have any other questions, please feel free to call us at 608-757-1989.
Is there an age limit on claiming my child as a dependent?
To claim your child as a dependent, your child must meet either the qualifying child test or the qualifying relative test:
To meet the qualifying child test, your child must be younger than you and either younger than 19 years old or be a "student" younger than 24 years old as of the end of the calendar year.
There is no age limit if your child is "permanently and totally disabled" or meets the qualifying relative test.
In addition to meeting the qualifying child or qualifying relative test, your child must also meet all the other tests for claiming a dependent:
Dependent taxpayer test
Citizen or resident test
Joint return test
How do I notify the IRS my address has changed?
There are several ways to tell the IRS that your address has changed:
IRS FORM - Use IRS Form 8822, Change of Address or IRS Form 8822-B, Change of Address or Responsible Party-Business.
TAX RETURN - Use your new address when you file your tax return.
WRITTEN STATEMENT - Send the IRS a written statement with your:
Social Security Number (ITIN or EIN)
Mail your written statement to the address where you filed your last return.
Can I receive a tax refund if I owe for a prior year's federal taxes since I am currently making a payment under an installment agreement payment plan?
No, one of the conditions of your installment agreement is that any refund due to you, the IRS will automatically apply against the taxes you owe. Because the refund isn't applied towards your regular monthly payments, continue making your installment agreement payments as scheduled until you pay your liability, including accrued penalties and interest in full.
To qualify for Head-of-Household filing status, do I have to claim my child as a dependent?
Generally, to qualify for the Head-of-Household filing status, you must have a qualifying child or dependent. However, a custodial parent may be able to claim the Head-of-Household filing status with a qualifying child even if he or she released a claim to exemption for that child.
I received a Third $1,400 Economic Impact Payment issued in March-April 2021. Do I need to Pay all or some of it back, if the information reported on my 2021 tax return shows I don’t qualify for the amount I already received?
No, there is no provision in the law that would require individuals who qualified based upon their 2020 or 2019 tax returns to pay back all or part of the payment they received.
Will I need to provide information about the Third Economic Impact Payment or any additional payment in order to claim the 2021 Recovery Rebate Credit?
Maybe, the Third Economic Impact Payment was an Advance Payment of your 2021 Recovery Rebate Credit that you will claim on your 2021 federal tax return. While you are Not required to report the Third Economic Impact Payment on your 2021 tax return, you may need this information in order to claim the $1,400 2021 Recovery Rebate Credit if you didn’t receive it or now qualify for more ( additional dependent, lower income, etc.)
Is the Third Economic Impact payment included in my gross income for 2021?
No, the Third Economic Impact Payment (EIP) is NOT taxable income and will not be reported on your 2021 federal tax return. The EIP also will not affect your income for purposes of determining eligibility for federal government assistance or benefit programs.
I was claimed on someone else’s tax return in 2020 and I did not receive the Third Economic Impact Payment, what can I do to get this payment?
If you were claimed as a dependent in 2020, you are not eligible for the $1,400 Third Economic Impact Payment. But if nobody will claim you as a dependent for 2021, and you are otherwise eligible, you can claim the $1,400 2021 Recovery Rebate Credit. You must file a 2021 tax return to claim this credit.
Advance Child tax Credits: How do I reconcile my Advance Child Tax Credit payments?
When you file your 2021 federal tax return you will need to reconcile the Child Tax Credit. You will need to know the exact amount of Advance Child Tax Credit you received to compare against what the actual Child Tax Credit you qualify for on the 2021 tax return.
If the amount of your 2021 Child Tax Credit is greater than the total of your Advance Child Tax Payments, you will claim the remaining amount on your 2021 tax return.
If the amount you received in Advance Child Tax Credits exceeds the amount of Child tax Credit that you actually qualify for on your 2021 tax return, you may need to REPAY to the IRS that amount that you didn’t qualify for, based upon your income.
How can the total amount of the Advance Child Tax Credit payment be greater than the amount that I actually qualify for on my 2021 tax return?
The Advance Child tax Credit Payments were based upon information on your 2020 or 2019 federal tax returns. Family and life situations can be fluid throughout a given year. Here are a few examples:
a) Your income increased in 2021, so you didn’t qualify for the total Child Tax Credit amount.
b) Your filing status changed – got married, divorced, had a baby, adopted a child.
c) A qualifying child who resided with you in 2020, changed homes in 2021 and resided more than half the 2021 year with a different individual.
If I qualify for repayment protection for the Excess Child Tax Credit that I owe, how much repayment relief will I qualify for?
If you are required to repay Advance Child tax Credit payments, you may qualify for Repayment Protection which can protect you for part or all of the excess amount. This Repayment Protection is based on your filing status and your AGI (Adjusted Gross Income) on your 2021 federal tax return.