The recent aid package included new stimulus payment amounts including an increased amount for each dependent. Additionally, there is relief for families facing unemployment by allowing an exclusion for unemployment income claimed on your tax return.
Under the “kiddie tax,” if unearned income of a dependent child who is under age 19 or a full-time student under age 24 exceeds an annual threshold, the excess is taxed at the top rate of the child’s parents. The threshold on 2014 returns is $2,000.
For most children in America, the holiday season is a wonderful time, with tasty treats, vacation from school, and plenty of toys and gifts that seem to magically appear.
Taxpayers who adopt a child do more than open their hearts – they also open their opportunities to take advantage of tax credits.