Show Child May Earn Yet Be Tax Exemption For Parents I Do you have a son or daughter working during the summer vacation vacatIon vacation vaca vaca- tion who is likely to earn more than before school starts stam again I If so he or she doesn't have to quit work before earning that amount for you to retain your yourl childs child's exemption deduction The same holds true if you have a non- non student working child who will still sUII be under 19 by the end of the tax year In either case regardless of how much the child earns the parent may claim an exemption providIng providIng providing provid provid- ing he has furnished over half the total cost of his childs child's support for forthe forthe forthe the year This rule also als applies inthe Inthe in inthe the case casP of legally adopted child child- ren There is one important thing to keep In mind A dependent child is also entitled to an exemption deduction deduction deduction de de- de- de for himself on his own separate return On the other hand If he is married and files flies a joint return with his wife no dependency dependency dependency de de- de- de exemption may be claimed by the parent Charles I. I Fox District Director of Internal Revenue today clarified clan clari fled fied revenue laws which have confused confused con con- fused parents in Utah We have reports of both parents parents par par- parents and employers telling workIng workIng working work- work Ing children they'll have to quit their jobs before they earn They can work right up to the reopening reopening re reo re- re opening of school if they want to Director Fox said The children however may have to pay a 11 small tax Since many of them are studying our own courses In basic taxation they already know this By Dy the same token many of them who work only short terms of employment employment employment em em- or for far a smaller salary will probably be to refunds refunds refunds re re- re- re funds during the next filing sea sea- son This Information should prove prove helpful to three parties to summer employment the student or child worker the parents and the employer employer em em- Fox said He lie warned that thatto thatto Ito to gain advantage of this rule children over 19 must be bona fide students at recognized educational Institutions or pursuing a full time from training course |