PARSIPPANY, N.J. // PRNewswire-FirstCall // -- A new tax rule provides detailed guidance to multigenerational families living in the same house on whether a grandparent versus the parent(s) can claim a child as a dependent when filing a 2009 tax return, according to Jackson Hewitt Tax Service®.
Under the rule, if a grandparent and the parent(s) of a child live in the same house and the child is considered a qualifying child for both the grandparent and the parent(s), the grandparent must now have a higher adjusted gross income (AGI) than the parent(s) to be allowed to claim the qualifying child. If not, the child can only be claimed by the parent(s).
"With today's families changing and so many grandparents raising or helping to raise grandchildren, there may be more taxpayers with questions on how a child can be properly claimed," said Mark Steber, chief tax officer, Jackson Hewitt Tax Service Inc. "This new rule gives further clarification to taxpayers, particularly in cases where a child can be considered a dependent for more than one person."
Being able to claim a child or grandchild for tax purposes gives taxpayers the opportunity to take advantage of several credits, such as the following:
"Remember that a dependent does not have to be a son or daughter – they can be a grandchild or other person you are supporting who has lived with you during the entire year," said Steber. "But the rules on what constitutes a qualifying dependent are complex, so be sure to speak with a knowledgeable tax preparer to find out who qualifies."
Tax preparers with Jackson Hewitt can help parents, grandparents raising grandchildren and other non-traditional families filing a 2009 tax return determine which credits and deductions they are entitled to, as well as answer a host of other filing-related questions.
Jackson Hewitt Tax Service Inc. (NYSE: JTX), with more than 6,300 franchised and company-owned offices throughout the United States, is an industry leader providing full service individual federal and state income tax return preparation. Most offices are independently owned and operated. In addition, an online tax preparation product, Jackson Hewitt® Online. The company is based in Parsippany, New Jersey.
SOURCE Jackson Hewitt Tax Service Inc.