Tax returns are affected by many things. One of them is the number of family members that are present in your family. Tax returns are affected by the arrival of a new baby, by marriage and by the death of a family member. Following are the details of the two major life events that bring a change in Tax returns:
Arrival of a New Child
If you adopt a child or you give birth to a child, there are a few changes in your tax status that you need to keep in mind. Usually the arrival of a new child makes the parent really busy, they tend to forget the rest if the duties.
Most parents are eligible for the Child Tax Credit, which is worth up to $1,000 per qualifying child. This credit can be claimed in addition to the Child and Dependent Care Tax Credit (Line 49 of Form 1040) and the Earned Income Tax Credit (Line 66a of Form 1040) if you qualify.
One of the conditions to be eligible for Child tax Credit is that the child should be a U.S. citizen, U.S. national, or U.S. resident alien.
Death of a Family Member
If you lost a family member, then his representative is suppose to handle the tax related issues. The person appointed as representative is responsible for filing his or her final tax return and any returns for the estate.
If you find any difficulty in understanding the concepts, you can simply dial help line of Tax Help MD. Our professionals will guide you properly.