Effect of “Obamacare” on Tax Dependency Exemption and Required Medical Care for Separated Parents
Parents frequently complain about how their children do nothing but cost them money. However, when it comes to taxes, children can actually save their parents some money. Parents are able to receive certain tax deductions for medical care provided to their dependent child as well as receiving certain personal exemptions for each individual they claim as a dependent. This has the potential to save parents thousands of dollars on their tax returns, since the exemption will reduce their taxable income by a fixed amount. For 2016, the deduction amount ranges up to $4,050 for each exemption claimed.
For parents that are together and file their taxes jointly, there is no controversy as far as the dependency exemptions and deductions are concerned, as their child is seen as the dependent of both of them. When parents are separated or divorced, this becomes a bigger issue since only one parent can claim a child as a dependent for tax purposes. Since child support payments are not deductible or taxable, being able to claim a child as a dependent has important tax implications in regards to parents and the … Read More... “Tax Dependency Exemption: Child Support Payments & Obamacare”
The United States Supreme Court recently granted certiorari to two very controversial gay marriage issues, Prop 8, and DOMA. Below I will discuss the two different issues, how they came to be here, and what the likely outcome may be.