Two Tax Questions
I have a crazy situation with this first question.
So, last year, I did taxes for my parents, who have been claiming my Grandmother who had been living with them for the past several years. Last year, my grandmother received two 1099R forms. My grandfather passed away and up until his death had been collecting a pension. For one, the gross distribution amount is a little over $9000 with the code in box 7 being 7, and for the other, it's a little over $600 with the code being 4 in box 7 ( she JUST presented these forms to me very recently, unfortunately). Now, to my knowledge, she should have had her own taxes filed last year because of this and she could not have been a dependent on my parent's taxes, correct? So my question, with his new tax season, what would be the best way to approach my parent's taxes this year? Should I be amending last year's return before doing anything with current year's, etc. What would be the best course of action?
I have a daughter who has turned 18. She held a job in the summer of 2016 and then gained employment in either Sept/Oct of 2016. Between the two w2s she has received, her income totals below $3000. With that said, my thought is that I could just claim her on my taxes still, as I am still providing over half the care for her throughout the year, but as a relative as opposed to a qualifying child. However, would I also do her taxes separately as well and check that she's being claimed as a dependent? Just want to make sure that this is the correct course of action. Thanks to all in advance!
Last edited by anoel06 : 01-30-2017 at 07:09 PM.