Tax Impact of Having a Child Self-Study

Summary

Children of all ages come with a lot of costs. Whether it’s diapers or school supplies, raising a child can be more expensive than parents even realize. However, there are a few tax credits beneficial to parents that all tax pros need to know of to get their clients the maximum refund. This course examines a variety of tax issues involving children ranging in age from 0 to 27. Topics include tax credits available to taxpayers with dependent children, dependency exemption applicability, kiddie tax rules and tax benefits for qualified education expenses.

Objectives

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

• Apply the dependency rules for a child
• Identify when a child is subject to kiddie tax, which tax rate applies and how it is reported
• Determine how inheritances, court settlements and Social Security income impact a child’s reporting requirements
• Define the tax credits available to taxpayers with dependent children
• Calculate the expanded child tax credit, including the other dependent credit
• Summarize the requirements to claim education credits
• Determine the tax consequences of distributions from qualified tuition programs (§529 plans)
• Identify the effects of COVID-19 relief legislation on taxpayers with children

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.