Frequently Asked Questions

1.     Who can I claim as a dependent?

  • Citizenship status, marital status, relationship to the dependent and the amount of support provided
  • Basic income information such as your adjusted gross income
  • If no person supplied more than half of the potential dependent’s support, the terms of any multiple support agreement you may have

 2. What is the earned income tax credit   and how do I claim it?

EITC, the Earned Income Tax Credit, sometimes called EIC is a   tax credit to help you keep more of what you earned. It is a refundable   federal income tax credit for low to moderate income working individuals and   families. Congress originally approved the tax credit legislation in 1975 in   part to offset the burden of social security taxes and to provide an   incentive to work. When EITC exceeds the amount of taxes owed, it results in   a tax refund to those who claim and qualify for the credit.
To qualify, you must meet certain requirements and file a tax return, even if   you do not owe any tax or are not required to file.

3. Are moving expenses for my new job   tax-deductible?

Qualifying for the deduction

In order to deduct moving expenses, your relocation must meet   the following three tests:

1. Your move must be due to, or closely related to, the start of work.

2. You must meet the distance test.

3. You must meet the time test.

Moving expenses generally can be deducted if they are incurred within one   year from the date you first started your new employment. If more than a year   has passed, you must establish that circumstances existed that prevented you   from moving within the previous 12 months.

The distance test requires you to do some math. According to IRS rules, the distance test is met if   your new job location is at least 50 miles farther from your former home than   your old main job location was from your former home.

Dependents & Exemptions

4. 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:

  1. Qualifying child or qualifying relative test,
  2. Dependent taxpayer test,
  3. Citizen or resident test, and
  4. Joint return test.


Refund Inquiries

5. Question: Can I receive a tax refund if I am currently making payments under an installment agreement or payment plan for a prior year’s federal taxes?


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 monthly payment; 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 other payment arrangement 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 on these non-IRS refund offsets, you can contact Financial Management Service (FMS) at a toll-free number 800-304-3107.


Itemized Deductions, Standard Deductions

6. Top Frequently Asked Questions for Itemized Deductions, Standard Deductions