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Family Issues

Does money transferred from an account under my parent's name count as income?

Asked Tuesday, June 29, 2021 by Matthew H.

Good question.

First, to make sure I understand the facts, I’ll summarize the background. You’re saying that as a minor, you earned money in the past. Because you were a minor, your mother set up multiple bank accounts (in your name – not hers) at her bank and deposited your earnings in those accounts. Presumably, if there were any taxes to file and pay on your earnings, that was addressed annually, along the way. Now, you are an adult and wish to transfer money to a new bank account.

Based on the facts you stated, the money being transferred to a new bank account would not count as income. I imagine that you should have no trouble getting access to the funds in the old bank to transfer to the new bank because the multiple accounts at the old bank are all titled in your name. Even if it was the case that your mother was a joint owner on those accounts, you’d still full access because each of you is a joint owner (in my hypothetical).

Keep in mind, your fact pattern doesn’t specify what type of account is involved, so I assuming they’re just plain bank accounts, such as checking, savings, money market, or certificates of deposit. Depending on the type of account involved (such as a traditional IRA or Roth IRA), they answer might change.

I hope that helps.

Answer Provided by: personimage Adam Dickreiter

Alimony

2018-Alimony Deduction

Asked Thursday, December 20, 2018 by an anonymous user
For any divorce or separation agreement executed after December 31, 2018, or executed before that date but modified after, alimony payments are not deductible by the payor spouse.

If a pre-existing agreement is modified after December 31, 2018, the new rules will only apply if the modification expressly provides that the new law should be applicable.

Correspondingly, the recipient spouse will not have to include the alimony payments received as income.
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Estate Tax

Estate Tax - Federal Exemption

Asked Wednesday, January 15, 2014 by an anonymous user
For 2016 the Federal exemption from estate taxes is $5,450,000.
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Caregivers Helping Relatives

How do you define Caregiver?

Asked Wednesday, February 15, 2012 by an anonymous user
A family Caregiver is defined as an unpaid relative that helps care for an elderly parent or relative as compared to a Professional Caregiver such as a Nurse's Aide that is paid to provide services.
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Caregivers Helping Relatives

What are some of the deductions a Caregiver can take?

Asked Wednesday, February 15, 2012 by an anonymous user
A family Caregiver may qualify for various tax deductions and credits provide they meet certain criteria. You can take a parent or qualified relative as a dependent deduction on your tax return if certain tests are met including income and support. Secondly, a family caregiver may also be able to claim medical expenses they paid on behalf of their parent or relative as an itemized deduction on Schedule A of their tax return.
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Caregivers Helping Relatives

Are there any mistakes to avoid when doing taxes as related to Caregivers?

Asked Wednesday, February 15, 2012 by an anonymous user
Family Caregivers must make sure that the parent or relative they are claiming as a dependent deduction has not claimed themselves as a dependent on their own tax return or that no one else has claimed them. You cannot take a dependency deduction for anyone who has claimed themselves on their own tax return. Caregiver s should obtain a copy of the parent or relative’s tax return before filing their return .
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Caregivers Helping Relatives

Can both my sister and myself claim my dad as a dependent?

Asked Wednesday, February 15, 2012 by an anonymous user
In the case where there are siblings as shared caregivers of one elderly parent, , only one sibling can take the exemption for the parent. An agreement needs to be reached yearly as to which sibling will take the exemption on their return. The sibling taking the exemption will need to file Form 2120, Multiple Support Declaration, and have all of the other siblings sign the form claiming that they will not take the exemption on their own return.
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Caregivers Helping Relatives

Estate Planning Suggestions for Family Caregivers

Asked Wednesday, February 15, 2012 by an anonymous user
Many Caregivers provide support and care for elderly parents who are cash poor but house/real estate rich.Caregivers who pay for the care of their parents monthly house and living expenses and medical costs including private nurses should consider treating these payments as loans securing the loan against the parent’s home, in the event the house is sold to pay for nursing home cost , they can recoup the monies they had advanced.
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Alimony

I collect alimony payments. Can I make an IRA contribution?

Asked Sunday, January 29, 2012 by an anonymous user
Yes. Taxable alimony payments qualify as compensation for purposes of making an IRA contribution. You are subject to the same IRA contribution limitations as one who is working.
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