FAQ for Personal Services

This is going to depend on several factors

1. Are they a “qualifying” child per IRS rules?

a. In general, to be a taxpayer’s qualifying child, a person must satisfy four tests:

• Relationship — the taxpayer’s child or stepchild (whether by blood or adoption), foster child, sibling or stepsibling, or a descendant of one of these.
• Residence — has the same principal residence as the taxpayer for more than half the tax year. Exceptions apply, in certain cases, for children of divorced or separated parents, kidnapped children, temporary absences, and for children who were born or died during the year.
• Age — must be under the age of 19 at the end of the tax year, or under the age of 24 if a full-time student for at least five months of the year, or be permanently and totally disabled at any time during the year.
• Support — did not provide more than one-half of his/her own support for the year.

2. The age of the child – Different credits will only be available until the child reaches the age limits, Child & Dependent Care Credit – 12 & under, Child Tax Credit – 16 & Under, Earned Income Credit – 18 and under or up to 23 if they are a full-time student.

3. Your earned income - The amount of all of the credits related to children are affected by your earned income. Based on the amount of your earnings you may receive all, part or none of each credit.