Filing Status, Exemptions, and Disability

The good discipline in tax preparation is to include all people that live in the tax payer's home on the Main Information Sheet.  Hopefully the tax payer included them on their "Intake/Interview" sheet.  Use the qualifying child and qualify relative flowcharts to determine the if the dependent qualifies for:
  • Dependency exemption
  • Child tax credit
  • Education credits
  • Head of household filing status
  • Child and dependent care credit and exclusion
  • Earned income tax credit
  • Medical expense deduction
On the Main Information Sheet, classify people as Code "0" if they are not a dependent, but always click EIC and let TaxWise work through its qualifying process.  A permanently and totally disabled person can qualify a tax payer as head of household without the disabled person as an exemption.  Some none exemptions may also qualify for medical expense deductions and child dependent care.