K.O. Notary & Live Scan Service

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

To be claimed as your dependent, your child must meet the qualifying child test or the qualifying relative test.  While the child's age is a factor in the qualifying child test, it is not in the qualifying relative test. An individual meeting the qualifying relative test may be of any age.

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

 

• Qualifying child or qualifying relative test,

• Dependent taxpayer test,

• Citizen or resident test, and

• Joint return test

 

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?

 

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.

Question: Is the mortgage interest and property tax on a second residence deductible?

The mortgage interest on a second home which you use as a residence for some portion of the taxable year is generally deductible if the interest satisfies the same requirements for deductibility as interest on a primary residence.
 

• The combined limitation for mortgage interest on your primary and secondary residence is $1,000,000 for acquisition indebtedness and $100,000 for home equity indebtedness.

• Real estate taxes paid on your primary and second residence are, generally, deductible.

• Deductible real estate taxes include any state, local, or foreign taxes based on the value of the real property levied for the general public welfare.

• Deductible real estate taxes do not include taxes charged for local benefits and improvements that increase the value of the property, such as assessments for sidewalks, water mains, sewer lines, parking lots, and similar improvements.

Question: Is it possible to find out if a federal tax refund check has been cashed?

If you need to know whether your federal tax refund check has been cashed, you can initiate a trace on your refund by using one of the following methods:

 

• You can go to the “Where’s My Refund?” system available through the IRS website and request assistance.

• You can call the IRS Refund Hotline toll-free at 800-829-1954 and either use the automated system or speak with an agent.

• If you filed a married filing jointly return, you cannot initiate a trace using the automated system.  The IRS will issue you a Form 3911 (PDF), Taxpayer Statement Regarding Refund, to get the process started.

Question: What is the difference between a Form W-2 and a Form 1099-MISC?

Although both of these forms are called information returns, they serve different functions.

The Form W-2 (PDF) is used by employers to:

 

• Report the employee's income and social security taxes withheld and other information.  See General Instructions for Forms W-2 and W-3 (PDF) for more information.

• Report wage information to the employee, and the Social Security Administration. The Social Security Administration shares the information with the Internal Revenue Service. 

 

A Form 1099-MISC (PDF) is:

• Used generally to report payments made in the course of a trade or business to a person who is not an employee or to an unincorporated business.

• Required when payments of $10 or more in gross royalties or $600 or more in rents or compensation are made.

• Provided by the payer to the IRS and the person or business that received the payment.