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Children's Tax Returns When I first started doing tax returns, children’s tax returns were quite simple and even had some major benefits like double deduction for the exemption (I am really dating myself with that one!) But now they are best described like a participant did at a recent seminar – “the parents can do their own; it’s the kids who cause me the most headaches.” I know many of you whose children are entering the work force, even if just a summer job, want them to learn about taxes and what needs to be done. That is fine but it can be a very expensive lesson. The laws for children’s returns are so impacted by the laws for parents that if the two are not coordinated you can be leaving hundreds if not thousands of dollars in tax savings “on the table.” Everything from education deductions or credits for federal or state, exemption deductions, and a host of other issues are involved. When I file your return electronically, if your child has
done something that doesn’t dovetail to your return, the filing will be
rejected. That means extra work for both of us to get it correct for filing and
could involve having to do an amended return for your child to maximize the tax
savings. This time and expense greatly exceeds the typical $50-$75 to
completely prepare and electronically file the child’s Form 1040EZ and state
return. Give me a call or email and with just a couple of questions I can advise you of how the returns should be filed, who will realize the most tax savings, and related items. That is what ATA is designed to cover for you. |
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