BUSINESS + ECONOMY

When is the right time for parents to drop children off their taxes?

Apr 11, 2022, 9:44 AM | Updated: 3:50 pm

social security check shown, people are being sent collection notices about their checks...

In this Feb. 11, 2005 file photo, trays of printed social security checks wait to be mailed from the U.S. Treasury's Financial Management services facility in Philadelphia. (AP Photo/Bradley C Bower, File)

(AP Photo/Bradley C Bower, File)

 SALT LAKE CITY — With tax day fast approaching — deadline is April 18 — when can parents no longer claim their children as dependents? A tax expert answers those questions and more.

Dave & Dujanovic are also talking about what happens if you end up owing more on your taxes than you anticipated.

Don’t wait on hold for hours

Susan Spiers, CEO of the Utah Association of CPAs, joins the show to share her insight.

This year, Debbie said she owed the government “a ton of money.”

“Is it too late for those folks like me who just find themselves with this massive tax bill to call the IRS and say, ‘Hey, can we make a deal?'” Debbie asked.

“No, it’s not. In fact, I would suggest that rather than call the IRS and sit on hold for several hours, just hop online, go to the IRS website,” Spiers said. “You can apply for a payment plan online.”

What about the kids?

The IRS defines a dependent as a qualifying child under age 19 (or under 24 if a full-time student) or a qualifying relative who makes less than $4,300 a year (tax year 2021). There’s no age limit if your child is permanently and totally disabled. Your dependent child must live with you for more than half the year, but there are exceptions.

Dave said he receives a tax credit of $2,000 a year per child.

“Doesn’t that disappear at a certain age, even if you do claim them?” he asked.

“Yeah because the child tax credit, that goes till they’re 17,” Spiers said. “Now, if they’re going to school, you may want to claim them because then you have education credits that you could take on your tax return if you’re claiming them as a dependent.”

Spiers added that if you have an IRA, you can add any contribution up until the tax deadline of April 18.

“This year, the filing deadline is the 18th because Good Friday is on the 15th, so so we get to we get an extra few days,” she said. “CPAs don’t like it because we’re working another weekend.”

Child Tax Credit

Under the American Rescue Plan of 2021, advance payments of up to half the 2021 Child Tax Credit were sent to eligible taxpayers.

Spiers said those advanced payments have thrown off some people this tax season.

“If you’re planning for that big refund and then all of a sudden you got half your child tax credit during the year, that refund isn’t going to be as big so be aware of that.”

Dave agreed, saying there have been wrinkles in tax filings during the past few years.

“We used to be able to rubber stamp it and just kind of blast through it. But with the child tax credits, the stimulus money, there’s so many things that have happened in the last couple of years, I think everyone’s just a little unsettled and not quite sure what to do.”

Dave & Dujanovic can be heard weekdays from 9 a.m. to noon. on KSL NewsRadio. Users can find the show on the KSL NewsRadio website and app, as well as Apple Podcasts and Google Play.  

 

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Business + Economy

Ahead of the NHL to Utah party on Wednesday, Utahns crowded the plaza of the Delta Center and waite...

Simone Seikaly, Eric Cabrera, Emma Keddington, Adam Small

Utahns showing up for the NHL in Utah

Ahead of the NHL to Utah party, Utahns crowded the plaza of the Delta Center and waited in long lines for the party to start.

3 hours ago

ftc building shown, a new rule would bar noncompete agreements for most...

CHRISTOPHER RUGABER AP Economics Writer

New federal rule would bar ‘noncompete’ agreements for most employees

The Federal Trade Commission voted Tuesday 3-2 to ban measures known as noncompete agreements.

13 hours ago

A photovoltaic panel shines in the sun at the Appaloosa Solar 1 project near Cedar City. Rocky Moun...

Derrick Jones

Rocky Mountain Power withdraws from renewable energy partnership

Rocky Mountain Power has pulled out of a partnership with many Utah communities whose goal is to use 100% renewable energy by 2030.

13 hours ago

The Delta Center ice prior to Ryan Smith, co-founder and chairman of Smith Entertainment Group, Ash...

Heather Peterson

NHL expected to bring new customers to downtown Salt Lake City businesses

With a new National Hockey League team coming to town, the downtown economy is expecting a boost in profits. 

15 hours ago

ftc building shown, a new rule would bar noncompete agreements for most...

CHRISTOPHER RUGABER, Associated Press

New federal rule would bar ‘noncompete’ agreements for most employees

FTC officials asserted that noncompete agreements harm workers by reducing their ability to switch jobs for higher pay.

1 day ago

FILE: Mountain America Credit Union 660 South. 200 East, in Salt Lake City. A new report from USA T...

Don Brinkerhoff

Utah-based credit union named a top five large business employer

Mountain America Credit Union employees helped land the company among the top five large businesses in America.

1 day ago

Sponsored Articles

a doctor putting her hand on the chest of her patient...

Intermountain Health

Intermountain nurse-midwives launch new gynecology access clinic

An access clinic launched by Intermountain nurse-midwives provides women with comprehensive gynecology care.

Young couple hugging while a realtor in a suit hands them keys in a new home...

Utah Association of Realtors

Buying a home this spring? Avoid these 5 costly pitfalls

By avoiding these pitfalls when buying a home this spring, you can ensure your investment will be long-lasting and secure.

a person dressed up as a nordic viking in a dragon boat resembling the bear lake monster...

Bear Lake Convention and Visitors Bureau

The Legend of the Bear Lake Monster

The Bear Lake monster has captivated people in the region for centuries, with tales that range from the believable to the bizarre.

...

Live Nation Concerts

All the artists coming to Utah First Credit Union Amphitheatre (formerly USANA Amp) this summer

Summer concerts are more than just entertainment; they’re a celebration of life, love, and connection.

Mother and cute toddler child in a little fancy wooden cottage, reading a book, drinking tea and en...

Visit Bear Lake

How to find the best winter lodging in Bear Lake, Utah

Winter lodging in Bear Lake can be more limited than in the summer, but with some careful planning you can easily book your next winter trip.

Happy family in winter clothing at the ski resort, winter time, watching at mountains in front of t...

Visit Bear Lake

Ski more for less: Affordable ski resorts near Bear Lake, Utah

Plan your perfect ski getaway in Bear Lake this winter, with pristine slopes, affordable tickets, and breathtaking scenery.

When is the right time for parents to drop children off their taxes?