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Question:   How do I know if I have to file quarterly individual estimated tax payments?

Answer:   You must make estimated tax payments for the current tax year if both of the following apply:

  • You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.
  • You expect your withholding and credits to be less than the smaller of:
    • 90% of the tax to be shown on your current year’s tax return, or
    • 100% of the tax shown on your prior year’s tax return.  (Your prior year tax return must cover all 12 months.)

There are special rules for:

  • Certain small business taxpayers for any tax year beginning  in 2009
  • Certain taxpayers with higher adjusted gross income
  • Farmers and commercial fishermen
  • Aliens
  • Estates and Trusts

Additional Information:

Question:   Is there an age limit on claiming my child as a dependent?

Answer:   Age is a factor in the qualifying child test, but a qualifying relative can be any age.

As long as the following tests are met, you may claim a dependency exemption for your child:

  1. Qualifying child or qualifying relative test
  2. Dependent taxpayer test
  3. Citizenship or resident test
  4. Joint return test

Additional Information:

Question:   If I claim my daughter as a dependent because she is a full-time college student, can she claim herself as a dependent when she files her return?

Answer:   If you claim your daughter as a dependent on your income tax return, she cannot claim herself on her income tax return.

  • If an individual is filing his or her own tax return, and the individual can be claimed as a dependent on someone else's return, the individual cannot claim his or her own personal exemption.
  • In this case, your daughter should check the box on her return indicating that someone else can claim her as a dependent.

Additional Information:

Question:   For head of household filing status, do you have to claim a child as a dependent to qualify?

Answer:   In certain circumstances, you do not have to claim the child as a dependent to qualify for head of household filing status; for example, a custodial parent may be able to claim head of household filing status even if he or she released a claim to exemption for the child.

Additional Information:

Question:   How do I know if I have to file quarterly individual estimated tax payments?

Answer:   You must make estimated tax payments for the current tax year if both of the following apply:

  • You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.
  • You expect your withholding and credits to be less than the smaller of:
    • 90% of the tax to be shown on your current year’s tax return, or
    • 100% of the tax shown on your prior year’s tax return.  (Your prior year tax return must cover all 12 months.)

There are special rules for:

  • Certain small business taxpayers for any tax year beginning  in 2009
  • Certain taxpayers with higher adjusted gross income
  • Farmers and commercial fishermen
  • Aliens
  • Estates and Trusts

Additional Information:
                                                          
                                                               Angelo A Cerbone Jr CPA LLC