1. 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

2. How much does an unmarried dependent student have to make before he or she has to file an income tax return?

Answer:   If you are an unmarried dependent student, you must file a tax return if your earned and/or unearned income exceeds certain limits.

• To find these limits refer to Who Must File, Dependents in Publication 501, Exemptions, Standard Deduction and Filing Information.
• Even if you do not have to file, you should file a federal income tax return if you can get money back (for example, had income tax withheld from your pay; you qualify for the earned income credit; you qualify for the additional child tax credit). See Who Should File in Publication 501, Exemptions, Standard Deduction and Filing Information, for more examples.

3. 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 can 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.

4. Can I receive a tax refund if I am currently in a payment plan for prior year’s federal taxes?

Answer:   No.  As a condition of your installment agreement, any refund due to you in a future year will be applied against the amount that you owe.

• The IRS will automatically apply the refund to the taxes owed.
• You must continue making your installment agreement payments as scheduled and in full because your refund is not applied toward your regular payment, and therefore any payments due under the installment agreement must still be made in full..
• Regardless of whether you are participating in an installment agreement or payment plan with the IRS, you may not get all of your refund if you owe certain past-due amounts, such as federal tax, state tax, a student loan, or child support. For more information you can contact Financial Management Service (FMS) toll-free at 800-304-3107.

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

6. What is the American Recovery and Reinvestment Act (ARRA) of 2009?

Answer:   The American Recovery and Reinvestment Act (ARRA) of 2009 was signed into law by President Obama on February 17, 2009. The bill is intended to provide a stimulus to the U.S. economy in the wake of the economic downturn. The bill includes federal tax cuts, expansion of unemployment benefits and other social provisions, including domestic spending in education, health care, and infrastructure, including the energy sector.

7. What should I do if I made a mistake on my federal return that I have already filed?

Answer:   It depends on the type of mistake that you made:

• Many mathematical errors are caught in the processing of the tax return itself so you may not need to correct these mistakes.
• If you did not attach a required schedule, the IRS will contact you and ask for the missing information.
• If you did not report all your income or did not claim a credit, you should file an amended or corrected return using Form 1040X (PDF), Amended U.S. Individual Income Tax Return.
When filing an amended or corrected return:
• Include copies of any schedules that have been changed or any Form W-2 (PDF) you did not include. File 1040X only after you have filed your original return. Generally, for a credit or refund, you must file Form 1040X within 3 years (including extensions) after the date you timely filed your original return or within 2 years after the date you paid the tax, whichever is later.
•  Please allow the IRS 8-12 weeks to process an amended return.

8. What is a split refund?

Answer:   A split refund lets you divide your refund, in any proportion you want, and direct deposit the funds in up to three different accounts with U.S. financial institutions.

9. 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