The best tax preparation in Lake Nona, FL professional will tell you that it does not take long for children to enter the early stages of adulthood, and before you know it, they start finding jobs so that they can become independent and face the world on their own. That is a great thing, but do you know about the law and tax regulations which will be implemented on your child once he or she starts to work? Here is a guide to help you with your child’s tax preparation in Lake Nona, FL.
Why should I make Tax Preparation in Lake Nona, FL for my Child?
There are 3 reasons why children should file under the file of federal income tax returns using tax preparation in Lake Nona, FL, they include:
- It is important to file for federal tax returns under the order of the International Revenue Service, or the IRS, who work under the revenue sector of the government.
- Tax returns can help your child recover extra money which belongs to them, but is being held back by the employer.
- Filing and being informative will help your child stay stable financially and will prepare them to save and pay taxes in the future throughout their adulthood.
When must my Child file for Tax Returns?
There are 3 categories; once you child, or your children meet any one of these, they become eligible to file for tax preparation in Lake Nona, FL . They are:
- At the end of the year under the age of 19 years
- Full time students who are under the age of 24
- Disabled children can apply at any age, if they are permanently disabled that is
If you want to have your child exempted, the taxpayer then must provide 50% of support to the child and the child has to reside with the taxpayer for at least half of the year. All or any parents, foster parents, step-parents, grandparents, and even siblings may claim this for the child to become a dependant.
There are 4 ways a child can be determined as a dependant, this requires a filing for the given year of tax returns for which the taxpayer must make tax preparation in Lake Nona, FL. This area accepts dependency so does the IRS if any one of the following 4 categories are being met with.
- Unearned income over USD$1,000. This includes investments, gains, etc.
- If the income is above USD$6,550
- The amount of gross income exceeds USD$1,000 or USD$6,550
- Self employment net earnings exceed USD$400
If a blind child has a SSN and has Medicare taxes who also receives wages, then in such case, you must refer to a tax professional.
How can Parents prepare for Tax Preparation in Lake Nona, FL
Parents should understand the following things in order to prepare themselves, and their child:
- Those children who are self employed are eligible, and are required to pay self employment taxes even if no income tax is owed, this will be paid to Social Security and Medicare. Form SE is the form you need for this.
- If children earn through unearned income, in other words through gains, investments, and dividends, parents have the option to elect the child within their tax form to avoid separate files.
- Legally, if your child is mature enough to vote, they are mature enough to file for their tax returns; if not, parents should help them with filing and tax preparations.
If you need more information about our Lake Nona, FL accounting and tax services, please contact us at 407-344-1012. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, Hunters Creek, Lake Nona, Celebration, Winter Park, Windermere, Dr. Phillips, Maitland, Altamonte Springs, Winter Garden, Ocoee, Apopka, Belle Isle, Edgewood, and Oakland FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin number, incorporations, and non profit 501c3 tax exempt.