Do you know if this credit is refundable? Like if I don't owe any taxes, would I still get that $500 as part of my refund?

The Credit for Other Dependents is non-refundable, which means it can reduce your tax liability down to zero, but you won't get any excess amount as a refund. So if you only owed $300 in taxes, you'd only benefit from $300 of the potential $500 credit. However, having your aunt as a dependent might make you eligible for Head of Household filing status if you qualify, which has better tax rates and a higher standard deduction than filing as Single. That could potentially save you more than the $500 credit itself.

Food stamps/SNAP benefits aren't considered taxable income, so they don't count toward the gross income limit for dependents. They do count as support, but not as income for the income test. So your mother-in-law can still qualify as your dependent as long as her actual taxable income is under the limit (which is around $4,850 for 2024) and you provide more than half her total support.

This is such a good point that I didn't consider! I'll definitely call the state tax department directly tomorrow and ask about this. Do you think I should mention this to my auditor first, or just go directly to the taxpayer assistance division? Also, when you said they just needed you to "verify some details" - what kind of information did they ask for? I want to make sure I'm prepared before I call.

I would contact the taxpayer assistance division first, then let your auditor know what they said. Sometimes auditors are limited in what assistance they can provide, while the taxpayer help division is specifically there to solve these kinds of issues. For verification, they asked me to confirm my social security number, the employer's name (which they had on file), and the approximate total income I had reported from that employer. They also asked for my current address to update their records. Some states may ask for additional identity verification like your date of birth or information from your most recent tax return. Having a copy of your 2016 tax return handy would be helpful even if you don't have the W-2.

Most states follow a 3-year statute of limitations similar to the IRS, BUT there are important exceptions. If they suspect substantial underreporting of income (usually 25%+), many states can go back 6+ years. And if they suspect fraud, there's typically no time limit at all. Some states also have different rules - California and a few others have 4-year standard limits, and certain tax situations can extend deadlines.

What about convention/event attendance? If I go to Maker Faire or similar events, can I deduct those expenses if I'm networking and getting ideas for content?

Convention attendance can absolutely be deductible if your primary purpose is business-related. That includes registration fees, travel expenses, meals (though these are usually limited to 50% deductible), and lodging. The key is being able to demonstrate the business purpose - so keep records of any business cards you collect, take notes on content ideas you develop there, document any meetings with potential sponsors, etc. If you're creating content at the event or about the event, that's even better proof of business purpose.

Having a full-time job doesn't prevent your content creation from being a legitimate business. The IRS looks at your "profit motive" and how you conduct the activity - not whether it's your primary source of income. To strengthen your case that it's a business and not a hobby: 1. Keep separate business records and maybe even a separate bank account 2. Have a business plan showing how you intend to grow your channel 3. Act in a businesslike manner (regular posting schedule, professional production) 4. Show that you're actively working to increase revenue (seeking sponsors, optimizing for monetization

Do these exemptions require applying every year? My parents are seniors and I'm trying to help them figure this out for their property tax increase.

It varies by location. Some exemptions like the basic homestead exemption usually only require a one-time application that remains in effect as long as you own and occupy the home. Senior exemptions often need annual renewal because they're typically income-based, and they want to verify the person still qualifies. Some places have simplified renewal processes where you just confirm nothing has changed. Check your county assessor's website for specific requirements or call them directly - this is definitely worth looking into for your parents!

That approach alone probably won't work. Assessments are based on market value, not condition. If homes are selling for 40% more in your area (even with old roofs), that's what they'll use. You need to focus on: 1) comparable sales that support a lower value, 2) specific issues with your property they missed, or 3) errors in how they calculated the assessment.

Thanks for this info! Do you think it would be better for her to deposit it in smaller chunks over time to avoid the hold? She's planning to use some of it for textbooks next semester.

I wouldn't recommend breaking it into smaller deposits to avoid a hold, as that could actually look more suspicious. Banks are trained to watch for "structuring" which is when people deliberately break up deposits to stay under reporting thresholds. If she needs immediate access to some of the money, she could deposit most of it and keep what she needs for textbooks in cash. Otherwise, she can just explain to the bank teller that it's a graduation gift and ask if there will be a hold. Many times if you explain the situation upfront, the bank can make accommodations or tell you exactly when funds will be available.

Is this true for all states too? Some states have weird extra tax rules, right?