PhillyTalk: Ask the Writers and Experts

I am not sure what you mean by Pennsylvania Health Tax. Box 14 is for records any other information for the employee, such as union dues, health insurance premiums, and educational assistance payments. Contributions to retirement plans that have no code can be listed here too. All entries should be clearly labeled. Most will be nontaxable earned income.

If you elect to itemize, medical expenses are the costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and the costs for treatments affecting any part or function of the body. They include the costs of equipment, supplies, and diagnostic devices needed for these purposes. They also include dental expenses.

Medical care expenses must be primarily to alleviate or prevent a physical or mental defect or illness. Do not include expenses that are merely beneficial to general health, such as vitamins or a vacation.

Medical expenses include the premiums you pay for insurance that covers the expenses of medical care, and the amounts you pay for transportation to get medical care. Medical expenses also include amounts paid for qualified long-term care services and limited amounts paid for any qualified long-term care insurance contract.

You can deduct only the amount of your medical and dental expenses that is more than 7.5% of your adjusted gross income (Form 1040, line 38).

The term “7.5% limit” is used to refer to 7.5% of your adjusted gross income. The phrase “subject to the 7.5% limit” is also used. This phrase means that you must subtract 7.5% (.075) of your adjusted gross income from your medical expenses to figure your medical expense deduction.

The dependency exemption can not be split. Generally, the child is treated as the qualifying child or qualifying relative of the custodial parent. This parent is usually allowed to claim the exemption for the child if the other exemption tests are met. However, the child may be treated as the qualifying child or qualifying relative of the noncustodial parent if certain conditions are met.

The custodial parent signs a Form 8332 (PDF), Release of Claim to Exemption for Child of Divorced or Separated Parents, or a substantially similar statement, and provides it to the noncustodial parent who attaches it to his or her return. Please beware that if the custodial parent releases the exception, the custodial parent may not claim the Child Tax Credit.

******** This response does not represent a legal opinion from the IRS. To address your specific circumstances consult with a tax professional. ********

TAX TIP: EITC -

It’s easier than ever to find out if you qualify for EITC

EITC is a tax credit for people who work(ed) and didn't make much money. If you meet the requirements for EITC, and the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit. ********

For more information visit us at IRS.gov.

You may wish to consult with your software provider. Under the IRS instructions for Schedule D... http://www.irs.gov/instructions/i1040sd/ch02.html

• Lines 1 and 8
  • Column (b)—Date Acquired
  • Column (c)—Date Sold
  • Column (d)—Sales Price
  • Column (e)—Cost or Other Basis
  • Column (f)—Gain or (Loss)
• Line 18
   
• Line 19
  • Instructions for the Unrecaptured Section 1250 Gain Worksheet
• Line 21

Lines 1 and 8

 

Enter all sales and exchanges of capital assets, including stocks, bonds, etc., and real estate (if not reported on Form 4684, 4797, 6252, 6781, or 8824). But do not report the sale or exchange of your main home unless required (see page D-2). Include these transactions even if you did not receive a Form 1099-B or 1099-S (or substitute statement) for the transaction. You can use stock ticker symbols or abbreviations to describe the property as long as they are based on the descriptions of the property as shown on Form 1099-B or 1099-S (or substitute statement).

You must enter the details of each transaction on a separate line of Schedule D. If you have more than five transactions to report on line 1 or line 8, you can report the additional transactions on Schedule D-1. Instead of reporting your transactions on Schedules D and D-1, you can report them on an attached statement containing all the same information as Schedules D and D-1 and in a similar format. Use as many Schedules D-1 or attached statements as you need. Enter on Schedule D, lines 2 and 9, the combined totals from all your Schedules D-1 or the attached statements. Do not enter “available upon request” and summary totals in lieu of reporting the details of each transaction on Schedules D and D-1 or attached statements.

Add the following amounts reported to you for 2006 on Forms 1099-B and 1099-S (or substitute statements) that you are not reporting on another form or schedule included with your return: (a) proceeds from transactions involving stocks, bonds, and other securities and (b) gross proceeds from real estate transactions (other than the sale of your main home if you are not required to report it). If this total is more than the total of lines 3 and 10, attach an explanation of the difference (for example, you were the nominee for the actual owner of the property).

 

Column (b)—Date Acquired

 

Enter in this column the date you acquired the asset. Use the trade date for stocks and bonds traded on an exchange or over-the-counter market. For stock or other property sold short, enter the date the stock or property was delivered to the broker or lender to close the short sale.

The date acquired for an asset you held on January 1, 2001, for which you made an election to recognize any gain in a deemed sale is the date of the deemed sale and reacquisition.

If you disposed of property that you acquired by inheritance, report the gain or (loss) on line 8 and enter “INHERITED” in column (b) instead of the date you acquired the property.

If you sold a block of stock (or similar property) that you acquired through several different purchases, you may report the sale on one line and enter “VARIOUS” in column (b). However, you still must report the short-term gain or (loss) on the sale in Part I and the long-term gain or (loss) in Part II.

Column (c)—Date Sold

 

Enter in this column the date you sold the asset. Use the trade date for stocks and bonds traded on an exchange or over-the-counter market. For stock or other property sold short, enter the date you sold the stock or property you borrowed to open the short sale transaction.

Column (d)—Sales Price

 

Enter in this column either the gross sales price or the net sales price from the sale. If you sold stocks or bonds and you received a Form 1099-B (or substitute statement) from your broker that shows gross sales price, enter that amount in column (d). But if Form 1099-B (or substitute statement) indicates that gross proceeds minus commissions and option premiums were reported to the IRS, enter that net amount in column (d). If you enter the net amount in column (d), do not include the commissions and option premiums from the sale in column (e).

You should not have received a Form 1099-B (or substitute statement) for a transaction merely representing the return of your original investment in a nontransferable obligation, such as a savings bond or a certificate of deposit. But if you did, report the amount shown on Form 1099-B (or substitute statement) in both columns (d) and (e).

Be sure to add all sales price entries on lines 1 and 8, column (d), to amounts on lines 2 and 9, column (d). Enter the totals on lines 3 and 10.

 

Column (e)—Cost or Other Basis

 

In general, the cost or other basis is the cost of the property plus purchase commissions and improvements, minus depreciation, amortization, and depletion. If you inherited the property, got it as a gift, or received it in a tax-free exchange, involuntary conversion, or “wash sale” of stock, you may not be able to use the actual cost as the basis. If you do not use the actual cost, attach an explanation of your basis.

If you sold stock, adjust your basis by subtracting all the nondividend distributions you received before the sale. Also adjust your basis for any stock splits. See Pub. 550 for details.

If you elected to recognize gain on an asset held on January 1, 2001, your basis in the asset is its closing market price or fair market value, whichever applies, on the date of the deemed sale and reacquisition, whether the deemed sale resulted in a gain or an unallowed loss.

You may elect to use an average basis for all shares of a mutual fund if you acquired the shares at various times and prices and you left the shares on deposit in an account handled by a custodian or agent who acquired or redeemed those shares. If you are reporting an average basis, include “AVGB” in column (a) of Schedule D. For details on making the election and how to figure average basis, see Pub. 564.

The basis of property acquired by gift is generally the basis of the property in the hands of the donor. The basis of property acquired from a decedent is generally the fair market value at the date of death. See Pub. 551 for details.

Increase the cost or other basis of an original issue discount (OID) debt instrument by the amount of OID that has been included in gross income for that instrument. See Pub. 550 for details.

If a charitable contribution deduction is allowed because of a bargain sale of property to a charitable organization, the adjusted basis for purposes of determining gain from the sale is the amount that has the same ratio to the adjusted basis as the amount realized has to the fair market value. See Pub. 544 for details.

Increase your cost or other basis by any expense of sale, such as broker's fees, commissions, state and local transfer taxes, and option premiums, before making an entry in column (e), unless you reported the net sales price in column (d).

For more details, see Pub. 551.

Column (f)—Gain or (Loss)

 

You must make a separate entry in this column for each transaction reported on lines 1 and 8 and any other line(s) that applies to you. For lines 1 and 8, subtract the amount in column (e) from the amount in column (d). Enter negative amounts in parentheses.

Capital Loss Carryover Worksheet—Lines 6 and 14

 

Use this worksheet to figure your capital loss carryovers from 2005 to 2006 if your 2005 Schedule D, line 21, is a loss and (a) that loss is a smaller loss than the loss on your 2005 Schedule D, line 16, or(b) the amount on your 2005 Form 1040, line 41 (or your 2005 Form 1040NR, line 38, if applicable), reduced by any amount on your 2005 Form 8914, line 2, is less than zero. Otherwise, you do not have any carryovers.

1.	Enter the amount from your 2005 Form 1040, line 41, or Form 1040NR, line 38. If a loss, enclose the amount in parentheses			1.
2.	Did you file Form 8914 (to claim an exemption amount for housing someone displaced by Hurricane Katrina) for 2005? No. Enter -0-. Yes. Enter the amount from your 2005 Form 8914, line 2			2.
3.	Subtract line 2 from line 1. If the result is less than zero, enclose it in parentheses			3.
4.	Enter the loss from your 2005 Schedule D, line 21, as a positive amount			4.
5.	Combine lines 3 and 4. If zero or less, enter -0-			5.
6.	Enter the smaller of line 4 or line 5			6.
	If line 7 of your 2005 Schedule D is a loss, go to line 7; otherwise, enter -0- on line 7 and go to line 11.
7.	Enter the loss from your 2005 Schedule D, line 7, as a positive amount			7.
8.	Enter any gain from your 2005 Schedule D, line 15. If a loss, enter -0-	8.
9.	Add lines 6 and 8			9.
10.	Short-term capital loss carryover for 2006. Subtract line 9 from line 7. If zero or less, enter -0-. If more than zero, also enter this amount on Schedule D, line 6			10.
	If line 15 of your 2005 Schedule D is a loss, go to line 11; otherwise, skip lines 11 through 15.
11.	Enter the loss from your 2005 Schedule D, line 15, as a positive amount			11.
12.	Enter any gain from your 2005 Schedule D, line 7. If a loss, enter -0-	12.
13.	Subtract line 7 from line 6. If zero or less, enter -0-	13.
14.	Add lines 12 and 13			14.
15.	Long-term capital loss carryover for 2006. Subtract line 14 from line 11. If zero or less, enter -0-. If more than zero, also enter this amount on Schedule D, line 14			15.

Line 18

 

If you checked “Yes” on line 17, complete the worksheet on page D-8 if either of the following apply for 2006.

• You reported in Part II a section 1202 exclusion from the eligible gain on qualified small business stock (see page D-4), or

• You reported in Part II a collectibles gain or (loss). A collectibles gain or (loss) is any long-term gain or deductible long-term loss from the sale or exchange of a collectible that is a capital asset.

 

Collectibles include works of art, rugs, antiques, metals (such as gold, silver, and platinum bullion), gems, stamps, coins, alcoholic beverages, and certain other tangible property.

Include on the worksheet any gain (but not loss) from the sale or exchange of an interest in a partnership, S corporation, or trust held for more than 1 year and attributable to unrealized appreciation of collectibles. For details, see Regulations section 1.1(h)-1. Also, attach the statement required under Regulations
section 1.1(h)-1(e).

28% Rate Gain Worksheet—Line 18

 

1.	Enter the total of all collectibles gain or (loss) from items you reported on line 8, column (f), of Schedules D and D-1							1.
2.	Enter as a positive number the amount of any section 1202 exclusion you reported on line 8, column (f), of Schedules D and D-1, for which you excluded 50% of the gain, plus ⅔ of any section 1202 exclusion you reported on line 8, column (f), of Schedules D and D-1, for which you excluded 60% of the gain							2.
3.	Enter the total of all collectibles gain or (loss) from Form 4684, line 4 (but only if Form 4684, line 15, is more than zero); Form 6252; Form 6781, Part II; and Form 8824							3.
4.	Enter the total of any collectibles gain reported to you on: Form 1099-DIV, box 2d; Form 2439, box 1d; and Schedule K-1 from a partnership, S corporation, estate, or trust.							4.
5.	Enter your long-term capital loss carryovers from Schedule D, line 14, and Schedule K-1 (Form 1041), box 11, code C							5.	()
6.	If Schedule D, line 7, is a (loss), enter that (loss) here. Otherwise, enter -0-							6.	()
7.	Combine lines 1 through 6. If zero or less, enter -0-. If more than zero, also enter this amount on Schedule D, line 18							7.

You will need a copy of your 2006 Form 1040 and Schedule D to figure your capital loss carryover to 2007.

Schedule D Tax Worksheet

 

	Complete this worksheet only if line 18 or line 19 of Schedule D is more than zero. Otherwise, complete the Qualified Dividends and Capital Gain Tax Worksheet on page 38 of the Instructions for Form 1040 (or in the Instructions for Form 1040NR) to figure your tax.
	Exception: Do not use the Qualified Dividends and Capital Gain Tax Worksheet or this worksheet to figure your tax if: Line 15 or line 16 of Schedule D is zero or less and you have no qualified dividends on Form 1040, line 9b (or Form 1040NR, line 10b); or Form 1040, line 43 (or Form 1040NR, line 40) is zero or less. Instead, see the instructions for Form 1040, line 44 (or Form 1040NR, line 41).
	1.		Enter your taxable income from Form 1040, line 43 (or Form 1040NR, line 40)														1.
	2.		Enter your qualified dividends from Form 1040, line 9b (or Form 1040NR, line 10b)				2.
	3.		Enter the amount from Form 4952, line 4g	3.
	4.		Enter the amount from Form 4952, line 4e*	4.
	5.		Subtract line 4 from line 3. If zero or less, enter -0-				5.
	6.		Subtract line 5 from line 2. If zero or less, enter -0-								6.
	7.		Enter the smaller of line 15 or line 16 of Schedule D				7.
	8.		Enter the smaller of line 3 or line 4				8.
	9.		Subtract line 8 from line 7. If zero or less, enter -0-								9.
	10.		Add lines 6 and 9											10.
	11.		Add lines 18 and 19 of Schedule D								11.
	12.		Enter the smaller of line 9 or line 11											12.
	13.		Subtract line 12 from line 10														13.
	14.		Subtract line 13 from line 1. If zero or less, enter -0-														14.
	15.		Enter the smaller of:
			• The amount on line 1 or •$30,650 if single or married filing separately; $61,300 if married filing jointly or qualifying widow(er); or $41,050 if head of household								15.
	16.		Enter the smaller of line 14 or line 15								16.
	17.		Subtract line 10 from line 1. If zero or less, enter -0-				17.
	18.		Enter the larger of line 16 or line 17											18.
			If lines 15 and 16 are the same, skip lines 19 and 20 and go to line 21. Otherwise, go to line 19.
	19.		Subtract line 16 from line 15											19.
	20.		Multiply line 19 by 5% (.05)														20.
			If lines 1 and 15 are the same, skip lines 21 through 33 and go to line 34. Otherwise, go to line 21.
	21.		Enter the smaller of line 1 or line 13								21.
	22.		Enter the amount from line 19 (if line 19 is blank, enter -0-)								22.
	23.		Subtract line 22 from line 21. If zero or less, enter -0-											23.
	24.		Multiply line 23 by 15% (.15)														24.
			If Schedule D, line 19, is zero or blank, skip lines 25 through 30 and go to line 31. Otherwise, go to line 25.
	25.		Enter the smaller of line 9 above or Schedule D, line 19								25.
	26.		Add lines 10 and 18				26.
	27.		Enter the amount from line 1 above				27.
	28.		Subtract line 27 from line 26. If zero or less, enter -0-								28.
	29.		Subtract line 28 from line 25. If zero or less, enter -0-											29.
	30.		Multiply line 29 by 25% (.25)														30.
			If Schedule D, line 18, is zero or blank, skip lines 31 through 33 and go to line 34. Otherwise, go to line 31.
	31.		Add lines 18, 19, 23, and 29											31.
	32.		Subtract line 31 from line 1											32.
	33.		Multiply line 32 by 28% (.28)														33.
	34.		Figure the tax on the amount on line 18. Use the Tax Table or Tax Computation Worksheet, whichever applies														34.
	35.		Add lines 20, 24, 30, 33, and 34														35.
	36.		Figure the tax on the amount on line 1. Use the Tax Table or Tax Computation Worksheet, whichever applies														36.
	37.		Tax on all taxable income (including capital gains and qualified dividends). Enter the smaller of line 35 or line 36. Also include this amount on Form 1040, line 44 (or Form 1040NR, line 41)														37.
			*If applicable, enter instead the smaller amount you entered on the dotted line next to line 4e of Form 4952.

Please see Gift Taxes IRS Tax Tip 2007-39... http://www.irs.gov/newsroom/article/0,,id=107815,00.html

If you gave any one person gifts in 2006 that valued at more than $12,000, you must report the total gifts to the Internal Revenue Service and may have to pay tax on the gifts.

The person who receives your gift does not have to report the gift to the IRS or pay gift or income tax on its value.

Gifts include money and property, including the use of property without expecting to receive something of equal value in return. If you sell something at less than its value or make an interest-free or reduced-interest loan, you may be making a gift.

There are some exceptions to the tax rules on gifts. The following gifts do not count against the annual limit:

Tuition or Medical Expenses that you pay directly to an educational or medical institution for someone's benefit

Gifts to your Spouse

Gifts to a Political Organization for its use

Gifts to Charities

If you are married, both you and your spouse can give separate gifts of up to the annual limit to the same person without making a taxable gift.

******** This response does not represent a legal opinion from the IRS. To address your specific circumstances consult with a tax professional. ********

TAX TIP: E-FILE -

More than 50 percent of all Pennsylvania taxpayers filed electronically last year. It’s fast, easy, and accurate and is for individual taxpayers for tax professionals and for large and mid-size corporations. ********

This response does not represent a legal opinion from the IRS. To address your specific circumstances consult with a tax professional. ********

For more information visit us at IRS.gov.

For more information, get the IRS Publication 950, Introduction to Estate and Gift Taxes, IRS Form 709, United States Gift Tax Return, and Instructions for Form 709. They are available at the IRS Web site at IRS.gov in the Forms and Publications section or by calling 800-TAX-FORM (800-829-3676).

Check out the following two tax topics.

Topic 308 - Amended Returns… http://www.irs.gov/taxtopics/tc308.html

If you discover an error after your return has been mailed, you may need to amend your return. The service center may correct errors in math on a return and may accept returns with certain forms or schedules left out. In these instances, do not amend your return!

However, do file an amended return if any of the following were reported incorrectly:

your filing status

your total income 

your deductions or credits

An amended return must be filed on a paper Form 1040X (PDF), Amended U.S. Individual Income Tax Return, and mailed to your servicing center for processing. You may submit the form after the IRS processes your original return.

Use Form 1040X (PDF), Amended U.S. Individual Income Tax Return, to correct a previously filed Form 1040 (PDF), Form 1040A (PDF), Form 1040EZ (PDF), Form 1040NR (PDF), or Form 1040NR-EZ (PDF). If you are filing to claim an additional refund, wait until you have received your original refund (you may cash that check). To avoid penalty and interest, if you owe additional tax for a current year amended return, file Form 1040X and pay the tax by April 15 of the current year. If the due date falls on a Saturday, Sunday, or legal holiday, the due date is delayed until the next business day (i.e., Tax Year 2006 is due April 17, 2007).  

File a separate Form 1040X for each year you are amending. Be sure to enter the year of the return you are amending at the top of Form 1040X. The form has three columns. Column A is used to show original or adjusted figures from the original return. Column C is used to show the corrected figures. The difference between the figures in Columns A and C is shown in Column B. There is an area on the back of the form where you explain the specific changes being made on the return and the reason for each change. If the changes involve another schedule or form, attach it to the 1040X. For example, if you are filing a 1040X because you have a qualifying child and now want to claim the Earned Income Credit, you must attach a Form 1040 Schedule EIC (PDF) to show the qualifying person's name, year of birth, and social security number.  

Generally, to claim a refund, Form 1040X must be filed within 3 years from the date you filed your original return or within 2 years from the date you paid the tax, whichever is later.

 If you are filing more than one amended return, be sure to mail each in a separate envelope to the service center for the area in which you live. The Form 1040X Instructions list the addresses for the service centers.

 Please Note: Your state tax liability may be affected by a change made on your federal return. For information on how to correct your state tax return, contact your state tax agency.

 Topic 502 - Medical and Dental Expenses… http://www.irs.gov/taxtopics/tc502.html

 You may deduct only the amount by which your total medical care expenses for the year exceed 7.5% of your adjusted gross income. You do this calculation on Form 1040 Schedule A in computing the amount deductible.

 If you itemize your deductions on Form 1040, Schedule A (PDF), you may be able to deduct expenses you paid that year for medical care (including dental) for yourself, your spouse, and your dependents. A deduction is allowed only for expenses paid for the prevention or alleviation of a physical or mental defect or illness. Medical care expenses include payments for the diagnosis, cure, mitigation, treatment, or prevention of disease, or treatment affecting any structure or function of the body. The cost of drugs is deductible only for drugs that require a prescription, except for insulin.

Medical expenses include fees paid to doctors, dentists, surgeons, chiropractors, psychiatrists, psychologists, and Christian Science practitioners. Also included are payments for hospital services, qualified long–term care services, nursing services, and laboratory fees. Payments for acupuncture treatments or inpatient treatment at a center for alcohol or drug addiction are also deductible medical expenses. You may include amounts you paid for participating in a smoking–cessation program and for drugs prescribed to alleviate nicotine withdrawal. However, you may not deduct amounts paid for nicotine gum and nicotine patches, which do not require a prescription. You may deduct the cost of participating in a weight-loss program for a specific disease or diseases, including obesity, diagnosed by a physician. You may not deduct the cost of purchasing diet food items. In addition, you may include expenses for admission and transportation to a medical conference relating to the chronic disease of yourself, your spouse, or your dependent (if the costs are primarily for and essential to the medical care). However, you may not deduct the costs for meals and lodging while attending the medical conference.

 You can only include the medical expenses you paid during the year, regardless of when the services were provided. Your total medical expenses for the year must be reduced by any reimbursement. It makes no difference if you receive the reimbursement or if it is paid directly to the doctor or hospital.

 You may include qualified medical expenses you pay for yourself, your spouse, and your dependents, including a person you claim as a dependent under a multiple support agreement. If either parent claims a child as a dependent under the rules for divorced or separated parents, each parent may deduct the medical expenses he or she actually pays for the child. You can also deduct medical expenses you paid for someone who would have qualified as your dependent except that the person didn't meet the gross income or joint return test. Refer to Topic 354, Dependents.

  ******** This response does not represent a legal opinion from the IRS. To address your specific circumstances consult with a tax professional. ********

 TAX TIP: AUDITS –

 If you receive a notice from the IRS in the mail, do not panic. Open the letter and contact the IRS as soon as possible so you can start to address the issue. If your return is selected for examination, it does not suggest that you made an error or are dishonest. Returns are chosen by computerized screening, by random sample, or by an income document matching program. You should also know that many examinations result in a refund or acceptance of the tax return without change. ******** 

For more information visit us at IRS.gov.

Check out Tax Topic 428 - Roth IRA Distributions… http://www.irs.gov/taxtopics/tc428.html

In general, you do not include in your gross income qualified distributions from your Roth IRA. You may have to include part of other distributions from Roth IRA(s) in your income.

A qualified distribution is generally, any payment or distribution made after the 5–taxable–year period beginning with the first year for which a contribution was made to a Roth IRA set up for you, and that is made on or after you reach age 59 1/2, made because you are disabled, made to a beneficiary or to your estate after your death, or that is made to buy, build, or rebuild a first home.

A distribution used to buy, build or rebuild a first home must be used to pay qualified costs for the main home of a first time home buyer who is either yourself, your spouse, or you or your spouse's child, grandchild, parent, or other ancestor.

Part of any distribution that is not a qualified distribution may be taxable as ordinary income and subject to the additional 10% tax on early distributions. Distributions of conversion contributions within a 5–year period following a conversion may be subject to the 10% early distribution tax, even if the contributions have been included as income in an earlier year. Refer to Topic 558, Early Distributions from IRA's, for more information.

******* This response does not represent a legal opinion from the IRS. To address your specific circumstances consult with a tax professional. **********

TAX TIP: TELEPHONE EXCISE TAX REFUND -

The Telephone Excise Tax Refund (TETR) is a one-time payment available on your 2006 federal income tax return. It is designed to refund previously collected long distance telephone taxes. You can request a standard amount or request the actual amount paid. Individuals, businesses and tax-exempt organizations are eligible to request it. ********

For more information visit us at IRS.gov.

There are a number of issues here to determine if you can claim her as a dependent. There are five tests that must be met for a child to be your qualifying child. The five tests are:

Relationship, Age, Residency, Support, and Special test for qualifying child of more than one person..

Please review Publication 17 at the IRS.gov Web site. There are numerous examples listed to help you determine if you can claim this person as a dependent... http://www.irs.gov/publications/p17/ch03.html#d0e11503

 ******** This response does not represent a legal opinion from the IRS. To address your specific circumstances consult with a tax professional. ******** 

 TAX TIP: E-FILE -

More than 50 percent of all Pennsylvania taxpayers filed electronically last year. It’s fast, easy, and accurate and is for individual taxpayers for tax professionals and for large and mid-size corporations. ********

This response does not represent a legal opinion from the IRS. To address your specific circumstances consult with a tax professional. ********

For more information visit us at IRS.gov.