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.

Most people do not need to file if they made under the following amounts. However, if you have withholding or qualify for refundable credits, you may choose to file to get a refund.

IF your filing status is. . .
AND at the end of 2016  you were*. . .
THEN file a return if your gross income** was at least. . .
under 65
65 or older
Head of household
under 65
65 or older
Married filing jointly
under 65 (both spouses)
65 or older (one spouse)
65 or older (both spouses)
Married filing separately
any age (if your spouse itemizes deductions)
Qualifying widow(er) with dependent child
under 65
65 or older

Yes, you can still file. All penalties and interest are going to be based on what you owe the IRS, up to 5% per month.

For personal returns quarterly estimate are due April 15th, June 15th, September 15th, and January 15th.

Social Security can be taxed, depending on our total income for the year. Half of Social Security plus all other income is over $25,000 (or $32,000 for married filing joint) part of your Social Security is taxable. If you lived with our spouse, but file married filling separate, part of your Social Security is taxable even if you have no other income.

Set up an appointment online.
Set up an appointment by phone 814.941.1040