Tax Impact of Having a Child Self-Study

Summary

Clients with children require extra attention as there are a variety of tax issues involving children ranging in age from 0 to 27. Topics include examining tax credits available to taxpayers with dependent children (including the expanded child tax credit); determining whether a dependency exemption is allowed or allowable (even though the deduction is zero for 2018-2025); determining how the modified kiddie tax rules impact parents and children; allocating health insurance from the Marketplace to nondependent children under age 27; and claiming tax benefits for qualified education expenses.

Objectives

Upon completion of this course, you will be able to:

• Determine which taxpayer is allowed the dependency exemption for a child.
• Identify when a child is subject to kiddie tax, which tax rate applies and how it is reported.
• Determine how inheritance or court settlements impact a child’s reporting requirements.
• Summarize the tax credits available to taxpayers with dependent children.
• Analyze the expanded child tax credit, including the $500 nonrefundable credit.
• Determine how to allocate health insurance for family coverage from the Marketplace to a nondependent child under 27.
• Summarize the requirements to claim education credits.
• Determine the tax consequences of distributions from qualified tuition programs (§529 plans).

Course Details

This course includes an e-book and exam questions to help you earn CPE. CPE is issued after the exam is successfully completed.