Wednesday, March 25, 2009

Tax Advice from the Prestigious Internet

by the Prestigious Internet

With tax season upon us, many people come to me, as an economics major, with questions about tax policy and how it affects them.

Specifically: Can I still write off a child as a deduction if they've been kidnapped?

According to the IRS website, the answer is "yes," if two conditions are met:

  1. The child must be presumed by law enforcement to have been kidnapped by someone who is not a member of your family or a member of the child's family, and
  2. The child had, for the taxable year in which the kidnapping occurred, the same principal place of abode as the taxpayer for more than one-half of the portion of such year before the date of kidnapping.

So, if your child has not been kidnapped by a family member (this excludes most kidnappings, by the way*), and spent more than half of the tax-year, pre-kidnapping, living with you, they are considered for tax purposes a dependent.

As an example, take a hypothetical kidnapping on March 1, 1932. If the missing child had spent 30 or more days of the year leading up to March 1 (1932 being a leap year) in his parents' principle abode, they could write him off for the entire 1932 tax year. Just as a hypothetical.

The IRS also says you can continue to count the missing child as a dependent until they are determined to be dead, or it reaches the year they would have reached 18.
 
http://prestigiousinternet.blogspot.com/2009/03/tax-advice-from-prestigioud-internet.html
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