Page 19 - Supplement to Income Tax 2019

Additions & Corrections to the Text of Your Income Tax 2019

Earmarking support to one dependent (page 474). The first assess the extra tax using a summary assessment procedure
sentence should read as follows: “If you are contributing if you fail to request abatement of the assessment within
funds to a household consisting of several persons and the 60 days of receiving notice; this procedure does not require
amount you contribute does not exceed 50% of the total issuance of a deficiency notice, so there is no appeal to the
household support, you may be able to claim at least one Tax Court.”
dependent by earmarking your support to his or her use.” Religious beliefs against using Social Security numbers
In the Planning Reminder, the second sentence should (Page 477). In the first paragraph, the second sentence
read: “This will allow you to claim at least one dependent.” should read as follows: “That’s what the Tax Court told the

Multiple support agreements (page 475). Tests 3 and 4 Millers, who had refused to use SSN numbers for claiming
should read as follows: “3. Each contributor could have their two children as dependents.”
claimed the dependent—except that he or she gave less In the second paragraph, the fourth sentence should
than half the support; and 4. Each contributor who gave read as follows: “Here, the Government has a compelling
more than 10% agrees to let you claim the dependent. Each interest in effectively tracking dependency claims and
signs a Form 2120, “Multiple Support Declaration.” You administering the tax system in a uniform and mandatory
then attach the forms to your return.” way.” The last sentence on page 477 should read as follows:
Replace Examples 1 and 2 with the following: “If an individual entitled to an SSN was issued an ITIN,
1. “You and your two brothers contribute $2,000 an SSN could later be obtained, allowing duplicate claims
each toward the support of your mother. She to be made.”
contributes $1,000 of her own to support herself. Child Tax Credit and Credit for Other Dependents Worksheet
Your two sisters contribute $500 each. Thus, the (pages 499-500). The worksheet for figuring the credits
total support comes to $8,000. Of this, you and (from the Form 1040 instructions) is on pages 38–39 of
your brothers each gave 25% ($2,000 ÷ $8,000),
for a total of 75%. Each sister gave 6 ¼% ($500 this Supplement.
÷ $8,000). You or one of your brothers may claim Withholding rate on supplemental wages (page 522). In
your mother as a dependent, assuming the other the last sentence of the first “bullet,” the flat withholding
tests for a qualifying relative (21.4) are met. Since rate for supplemental wages is 22%.
each of you contributed more than 10% and
the total of your contributions is more than half Deducting trader expenses (page 574). In the second
your mother’s support, you may decide among sentence of the second paragraph, the cross-reference
yourselves which of the three of you will claim her. to the suspension of miscellaneous itemized deductions
If you claim her, your brothers must sign Forms should be to 19.2.
2120, which you attach to your return. If one of
your brothers claims her, you sign a Form 2120, Tax credit for real estate (page 584). The text of the
which is attached to that brother’s return. Since “Tax credit limitations” item should read as follows: “Tax
neither of your sisters furnished more than 10%, credits for low-income housing and rehabilitating historic
neither can claim your mother as a dependent; structures may be limited by passive activity restrictions on
they need not sign Forms 2120. Form 8582-CR (Chapter 10) and by tax liability limits for
2. Your mother’s support totals $10,000; you the general business credit on Form 3800 (Chapter 40).”
contribute $3,000; your brother, $2,000;
your father, $1,600; and your mother from QBI deduction for REIT dividends (page 590). In the third
her savings contributes $3,400. You and your paragraph of 31.16, the parenthetical cross-reference in the
brother cannot use your father’s contribution to first sentence should be to 40.24.
meet the more than 50% test required by Rule Deductible expenses for Armed Forces personnel (page
2 above. Your father may not join in a multiple 636). Qualifying moving expenses (12.3) and reservists'
support agreement because your mother is not his expenses that are deductible as above-the-line deductions
dependent for tax purposes (21.2).”
(without regard to itemizing) are claimed on Schedule 1
Social Security numbers of dependents (page 477). In of Form 1040. At the end of 35.3 (last bullet), the text
the fourth paragraph of 21.8, the second sentence should for “Reservists expenses” should read as follows: “If you
read as follows: “If your claim is disallowed, the IRS may travel overnight more than 100 miles from home in

Supplement to J.K. Lasser’s Your Income Tax 2019 | 15