Tax Documents Needed for Families With Children
Category: Tax Preparation
This check list is in the following categories:
If you support a child in your home, this is the information you will need and documents you will want to have available in order to complete your tax return.
Make sure you bring these tax documents or have this information with you when you go to the tax office. Your tax preparer can tell you if your child qualifies as a dependent.
Social security numbers (or ITIN) for each family member.
ITIN stands for Individual Taxpayer Identification Number.
This includes the childcare provider's name, address, and social security number or EIN (Employer Identification Number.) Also, you will need to know how much daycare expense was paid for each child.
If you cannot obtain the childcare provider's social security number, you can still file a tax return and receive the Dependant Care Credit, but you will need to mail in your tax return. To qualify for Dependant Care
Credit, the child needs to have been enrolled in after-school care while both parents either work or go to school.
Amount of money your employer paid for daycare expense.
Amount of reimbursement received from an FSA (Flexible Spending Account) for daycare expense.
The FSA reimbursement amount may be available on your W2.
It takes some figuring to know whether a Flexible Spending Account for daycare is right for you. The FSA allows daycare expense to be treated as an adjustment from income tax. Your tax advisor can tell you whether it is
better to use your daycare costs to help reduce your income tax, obtain a Dependent Care Credit, or both.
Amount of earned income received by your child.
It is important to know the exact amount of money your child earned during the year from working for an employer or as a contractor (such as babysitting.) It is possible that your child could have earned enough money to
file their own return, but if they are not self-supporting they generally will not claim them self as an exemption.
Amount of unearned income received by each child.
Unearned income is money received from a financial investment or interest-bearing account.
College education expenses
This includes cost of tuition, fees, and books. These expenses are used to calculate the education deduction and credits.
Cost of dorm room, school supplies, and parking are not used toward calculating an education tax credit. However, these expenses may be used to offset any scholarship awards that was not sent directly to the school and
specifically designated for tuition. If scholarship money is not designated entirely for tuition, this allows more education credit. Note: Scholarships are considered income to the person who receives them.
Amount received as a scholarship or grant for your child's college education.
Did you use savings bonds, an education savings plan, life insurance, or an IRA to fund your child's college education?
How many credits did your child take during each semester of the year? Is this considered full or part-time at their college?
Divorce decree (if applicable) or an understanding of which parent has the right to claim the children.
If you are divorced and there are child custody or tax-related issues regarding the children, you may be required to obtain the signature of the other parent on a specific tax form in order to file electronically.
Adoption expenses (if applicable) and when the adoption was final.
This information is not designed to be a substitute for the advice of your personal tax advisor.