Taxes 101
Family Tax Information
Your Household Could Qualify
Your child born on December 31 is assumed, for tax purposes, to have lived with you the entire year.
For each qualifying child, you can claim a dependent's exemption of $3,900.
For each qualifying child under the age of 17, you may be eligible for up to a $1,000 child tax credit or additional child tax credit....
If you are divorced or legally separated as of December 31, for tax purposes you are considered to be unmarried for the entire year. If divorced or legally separated, your filing status is single unless you qualify to file as head of household....
The same filing requirements that apply to individuals determine if a final income tax return must be filed for the decedent. The personal representative must file the final income tax return of the decedent for the year of death and any returns not filed for preceding years....
Property received as a gift retains the basis of the donor. Inherited property receives a stepped-up basis to the fair market value (FMV) of the property on the date of the decedent's death. Certain inherited property, such as IRAs and pensions, are taxable or have a portion that is taxable when distributed to the beneficiary....
If you are married as of December 31st of a year, you are considered married for the whole year. Your filing status depends on your marital status. The standard deduction for married filing jointly is $12,200 for 2014, with an additional $1,200 for each spouse age 65 or older, or blind....
The maximum adoption credit and exclusion amount is $12,970. This is also the maximum exclusion from income under an employer’s adoption assistance program. The full credit will be allowed for adopting a special needs child, regardless of whether the taxpayer has qualifying expenses....
