The Child Tax Exemption Myths in Nevada
Myth #1: Dependent children are not eligible for tax exemptions.
In Nevada, dependent children may be eligible for child tax exemptions. This means that any child being claimed as a dependent — meaning they are the legal responsibility of their parents or caregivers and are receiving financial support from them — can receive a tax break of up to $3,600 per year. This amount is based on the age and income of the parent or caregiver.
Myth #2: Only one type of child tax exemption is available.
Additional deductions are available for children depending on their age and income level, such as educational expenses, medical, or childcare costs. These other deductions can help reduce a family’s overall tax liability. However, it’s important to remember that these exemptions are not automatic and must be claimed yearly to take advantage of them.
Myth #3: Only biological parents can claim the exemption.
Caregivers and legal guardians are also eligible for up to $3,600 annually in tax exemptions for their dependents. This amount is based on their age and income level, as well as the age and income level of the dependent child. In addition, additional deductions may be available depending on the circumstances, including educational expenses, medical costs, or childcare costs.
Myth #4: Unmarried couples are not eligible for the child tax exemption.
Unmarried couples are eligible to receive a child tax exemption in Nevada. This is because the eligibility for this type of exemption is based on factors such as the age and income level of both the parent or caregiver and the dependent child. This means unmarried couples can qualify for up to $3,600 annually in tax exemptions depending on their age and income levels.
Myth #5: The age limit for claiming a dependent child’s tax exemption is 18.
In Nevada, dependents of any age may be eligible for certain tax exemptions depending on their income and the income of their parent or caregiver. These exemptions include up to $3,600 annually for those under 18 and additional deductions for those over 18, including educational expenses, medical, or childcare costs. However, the exemptions are not automatic and must be claimed annually to take advantage of them.
Myth #6: Tax credits like Earned Income Credit (EIC) reduce qualifying dependents for taking a tax credit.
The child tax exemption is a separate credit from the EIC, and having qualifying dependents may increase your eligibility for both credits. So while it’s true that having too many dependents may reduce your eligibility for the EIC, it won’t affect your eligibility for the child tax exemption.
Myth #7: Filing jointly does not increase the chances of receiving larger exemptions than filing separately.
While this may be true in some cases, it’s not always true. Your child tax exemption amount depends on several factors, including your income, the number of qualifying children you have, and whether you file jointly or separately. In some cases, filing separately may increase your eligibility for the child tax exemption and result in a larger refund.
Richard P. Davies and his team can help with all your child tax exemption questions! Call (775) 360-6894 or email us to schedule a free consultation and see how we can meet your needs.