Paul wishes to claim the Child Tax Credit by claiming his nephew, Jack, as a qua
ID: 2544394 • Letter: P
Question
Paul wishes to claim the Child Tax Credit by claiming his nephew, Jack, as a qualifying child dependent. Jack has an ITIN. Paul brings in Jack's middle school records showing that Jack's address is Paul's address. Assuming all the eligibility requirements are met, what additional questions should the Tax Professional ask to meet the due diligence requirements for this credit? Does the child receive social security disability income? Is the child disabled? Do the child's parents live with you? Why are the parents not claiming the dependent? How did you keep track of your business income and expenses? For what portion of the year has the child resided in the United States? How long has the child lived with you? Paul wishes to claim the Child Tax Credit by claiming his nephew, Jack, as a qualifying child dependent. Jack has an ITIN. Paul brings in Jack's middle school records showing that Jack's address is Paul's address. Assuming all the eligibility requirements are met, what additional questions should the Tax Professional ask to meet the due diligence requirements for this credit?Explanation / Answer
Basic/Normal Qualifications for availing Child Tax Credit in one's IT return will have to meet the following criteria: the child must be related to the taxpayer in any of several ways (son, daughter, grandchild,niece,nephew etc.) must be living in the taxpayer’s home more than half the year--for the year in which credit is claimed and must not be providing more than half of his or her own support. So, some more additional questions to meet due diligence will be Do the child's parents live with you? Why are the parents not claiming the dependent? ANSWER: b.