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Tax information for Parents of Kidnapped Children
You may claim a kidnapped child as your dependent if the following requirements are met:
- The child must be presumed by law enforcement to have been kidnapped by someone who is not a member of your family or a member of the child's family, and
- The child had, for the taxable year in which the kidnapping occurred, the same principal place of abode as the taxpayer for more than one-half of the portion of such year before the date of kidnapping.
- The dependency exemption
- The child tax credit, and
- Head of household or qualifying widow(er) with dependent child filing status.
This tax treatment will cease to apply as of your first tax year beginning after the calendar year in which either there is a determination that the child is dead or the child would have reached age 18, whichever occurs first.
For more information, refer to Publication 501, Exemptions, Standard Deduction, and Filing Information.
I thank The Browser for the pointer.
Posted by Tyler Cowen on March 27, 2009 at 04:41 AM in Law | Permalink
Comments
Completely logical, but...something's just plain wrong when we have to consider the tax status of kidnapped kids.
According to all I have heard, kids are usually kidnapped by the non-custodial parent, which as I read it, bar them from the deduction. So this regulation doesn't cover the majority of cases.
Posted by: Christopher W at Mar 27, 2009 4:53:51 AM
As guess, this brochure is not mainly aimed at people who really have a kidnapped kid who qualifies as such, but exactly at the people who do not qualify. A lot of people get in custodial fights, with both sides claiming kidnapping etc.
The IRS is basically saying "we give the deduction to the person who currently has the kid, and to sort out who really has custody is another problem".
Posted by: Zamfir at Mar 27, 2009 5:13:13 AM
I Second Zamfir.
If you truly have a kindnapped child, getting a tax deduction is not your biggest concern.
Posted by: MS at Mar 27, 2009 10:16:31 AM
And how about this one from Publication 17 (2008), Your Federal Income Tax, ch. 12
Other Income
Illegal activities. Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity.
Posted by: Joen at Mar 27, 2009 10:39:29 AM
Cold. Just plain cold.
Posted by: Jim at Mar 27, 2009 10:41:04 AM
I agree with Zamfir; it's probably designed more to exclude than to include.
Posted by: athelas at Mar 27, 2009 10:49:50 AM
What if you are the kidnapper can you also claim the kid and take a deduction from any ransom?
Posted by: Rob at Mar 27, 2009 11:03:14 AM
I am impressed. Our bureaucrats are so smart & efficient. Turn over the banks to IRS.
Posted by: JSIS at Mar 27, 2009 11:56:26 AM
Who doesn't love morbidity in the tax code?!
Posted by: Dave T at Mar 27, 2009 5:47:05 PM
If you truly have a kindnapped child, getting a tax deduction is not your biggest concern.
But it *IS* a big concern to my highly efficient CPA who gets paid to file my taxes on my behalf, because he isn't a private investigator or masked vigilante that rescues kidnapped children, he is an accountant.
Why do you hate the parents of kidnapped children, that you would have them taxed higher than the parents of non-kidnapped children?
Posted by: Mouldy Bread Pudding at Mar 27, 2009 6:54:44 PM
One problem is that it assumes that you know who the kidnapper is, or at least whether they are a family member or not.
Also, if you are the kidnapping parent, are you still entitled to a deduction?
Posted by: SheldonC at Mar 27, 2009 7:06:29 PM
It could be worse. You could also have returned your AIG bonus.
Posted by: rhhardin at Mar 28, 2009 1:02:51 AM
I agree with JSIS. How amazing is the US tax code that it even includes direction for people with kidnapped children. Our government is the best. If there was an international competition for tax codes and how detailed and precise they are, then ours would win, fo sho.
Posted by: Matt at Mar 29, 2009 12:58:22 AM
"What if you are the kidnapper can you also claim the kid and take a deduction from any ransom?"
"Also, if you are the kidnapping parent, are you still entitled to a deduction?"
No, the "relationship must not violate local law".
"Who doesn't love morbidity in the tax code?!"
"How amazing is the US tax code that it even includes direction for people with kidnapped children."
That wasn't a quote from the tax code, it was a quote from an IRS "Tax Topic".
Posted by: Anthony at Mar 30, 2009 2:40:44 PM
hahah That's the way it should be :]
Posted by: MICHELLE at Apr 14, 2009 7:24:58 PM
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http://www.bizymoms.com/taxes/index.html
Useful information on Tax Planning and online Tax advice. Tax Deduction tips and information on Tax Return Refund.
Posted by: Jackie at Jun 29, 2009 9:32:33 PM
Very helpful information. Thanks for sharing it!
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