Tax exemption

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If you have a child or if you work for someone who has a child or children, you may have the right to an exemption from income taxes. You can’t file your federal income taxes as a dependent on your children’s birth or adoption records. If you are a single person, your only dependent is your spouse. If you are married and have children, your children’s names appear on your tax return.

You will have to file and pay your federal income tax and take out a child care credit. If you are married and have dependents (children), the tax treatment of the children depends on the laws of your state. The amount you can receive from the child care credit is dependent on your income. The amount of the child care credit will be reduced by the amount you can claim as a tax deduction on your federal tax return. For more information on this tax credit, refer to Publication 502 and the instructions on page 471 of the IRS Publication 1525. If you have dependent children under age 19, you may claim this credit on your return if your income is at or below the poverty line for your family size, or you can choose to take the additional standard deduction. If you have no income and claim the additional standard deduction, you may only be able to claim the child care credit for the first child in your family. For more information on this additional credit, refer to Publication 502 and the instructions on page 471 of the IRS Publication 1525. If you do not have dependent children, you can only claim the child care credit for a qualifying child that is age 18 or older, or in the case of a minor under age 19, that is a full-time student who is attending school full-time. The total amount of the credit is limited to $3,000 per child. You must claim the child care credit for the dependent children on either Form 1040, Form 1040A, Form 1040EZ, Form 1040NR, or Form 1040NR-EZ. See the Instructions for Form 1040, line 26 for more information. For more information on how to use these forms, refer to Publication 502 and the Instructions on page 471 of the IRS Publication 1525.

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