Income Tax Exemptions You May Have Forgotten

Exempt income tax is income on which a person does not need to pay taxes provided that person qualifies for an exemption.

Common Tax Exemptions

Most people remember to claim exempt income tax for themselves, their spouses, and children under the age of 18. However, there are many more they overlook.

Forgotten Tax Exemptions

Here are six often forgotten tax exemptions:
  • Unmarried children under the age of 24 enrolled in a post-secondary school at least five months of the year;
  • Parents or relatives who depend on you for financial and/or physical support;
  • Children of divorce who live with you for at least six months total of the year;
  • Children of divorce for whom you provide more than half of their financial support, regardless of residency;
  • Children who are age 18, even if not enrolled in school full-time (age 19 is the cut-off);
  • Displacement after Midwestern disaster (if you have had to move after a tornado, hurricane, or flood)
How Much Can You Save?

Tax exemptions for dependents are among the highest tax exempt income tax and are worth several thousands of dollars in income tax exemption. Displacement after a Midwestern disaster can afford you several hundred to several thousand dollars in exemptions, depending on the damage sustained.
blog comments powered by Disqus