Do you know how much your dependents earned in 2014? I would strongly suggest finding out before you get your own tax return prepared this year.
Every year I write a post asking parents to check their children’s W-2 or final check stub before they come in to have their own tax return prepared. Traditionally, the reason I need the information is we can be sure that you can actually claim that child as a dependent. The whole process is explained in this blog post.
This year, however, the Affordable Care Act means that I have to ask about insurance coverage for you, spouse and anyone claimed as a dependent on your return. If someone on your return didn’t have health insurance for all or part of 2014, there is a form I might have to fill out as part of your return. Also if you purchased your insurance through the Health Insurance Marketplace (HIM) you might qualify for a tax credit or be subject to a penalty. To figure that out, I’ll need to know your dependent’s income. Besides wages, I will need any Social Security/SSI payments or other income they received in 2014.
If you had insurance through your employer, directly through an insurance company or a government program, your return will be a little simpler but you still need to have an idea of how much your dependent earned in 2014 to check out the support qualification.
Sorry! Please don’t shoot the messenger!