Article: The Role of Age in Tax Planning.(Statistical Data Included)

Introduction

The Internal Revenue Code contains numerous income tax provisions where the taxpayer's age is important. When a baby is born so is a new taxpayer whose taxable year starts on his/her birthday. As the baby grows up, more age-related tax provisions may apply. Even seemingly related provisions may contain different ages, in part because different Congresses passed the laws. Thus, the "Child Care Credit" applies to children under age 13, the "Kiddie Tax" to children under 14, the "Child Tax Credit" to children under 17, and the "Earned Income Credit" and the Dependency Exemption to children under 19 (24 if a student)! Eventually, the taxpayer dies, ...

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