Exceptions and Special Rules Tax 2023-2024

Tax laws can be intricate, with numerous exceptions and special rules that can impact your filings. This video covers the essential exceptions and special rules you need to know for the 2023-2024 tax year to ensure you're maximizing your benefits and staying compliant.

🔹 Key Exceptions and Special Rules:

Head of Household Status:

Qualifying Criteria: Understand the specific criteria for claiming Head of Household status, including maintaining a home for a qualifying person.
Benefits: Learn about the increased standard deduction and potentially lower tax rates available.
Multiple Support Agreements:

Shared Support: If multiple people contribute to the support of a dependent, discover how a multiple support agreement (Form 2120) allows one taxpayer to claim the dependent.
Child of Divorced or Separated Parents:

Custodial Parent: Generally, the custodial parent claims the dependent unless Form 8332 is provided to the non-custodial parent.
Special Rule: The IRS allows the non-custodial parent to claim the child tax credit if they have the signed release.
Temporary Absences:

Student Rule: A dependent child away at college is still considered to live with you if the absence is temporary and the home is maintained for them.
Military and Hospitalization: Similar rules apply for dependents temporarily absent due to military service or hospitalization.
Adoption Credit:

Qualifying Expenses: Credits for adoption-related expenses, including adoption fees, court costs, and attorney fees.
Special Needs Adoption: Higher credit limits and rules for adopting children with special needs.
Qualifying Relative:

Income Limits: A qualifying relative must have gross income below a certain threshold.
Support Test: You must provide more than half of the total support for the year.
Earned Income Tax Credit (EITC):

Special Rules for Married Filing Separately: Normally not eligible, but an exception exists for certain separated spouses living apart for the last six months of the year...