David Kindness is an accounting, tax and finance expert. See 7.2.5. The same goes for adult dependents, such as a taxpayer's parents. You will not receive a reply. For FTB Part B, the ATI of the secondary income earner (1.1.S.25) is only taken into account when the primary earner's ATI is at or below the income limit.
Page 11. We’ll reduce the rate of FTB Part A by 30 cents for each dollar of income over $98,988. Single parent or carer family. Indexation is due to re-commence on 1 July 2021. This means any income tests are based on your income as a family, as opposed to individual incomes. They might or might not have to live with you throughout the year as well—it depends on their degree of relation to you. So your dependent can earn income up to $4,200, but that figure isn’t carved in stone. But the rule for the Credit for Other Dependents is a bit looser. For planning purposes, however, you’re probably safe if you calculate based on about that amount because any change going forward shouldn’t be very significant. The standard rate of FTB Part A is the maximum annual amount payable for all FTB children based on their age without including the supplements and without applying the maintenance income test or the relevant income test. This means, if the primary earner's income is greater than $100,000, the family is no longer eligible to receive FTB Part B. Act reference: FAAct Schedule 1 clause 28D Member of a couple whose youngest FTB child has turned 13, Schedule 1 clause 30 FTB Part B rate - Standard rate. It’s not a refundable credit, either, so the best it can do is reduce or eliminate your tax bill. But there’s no bar against taxpayers being able to claim this credit if they’re married but filing separate returns. After that, the Credit for Other Dependents kicks in to help with your children up to age 18, or to age 23 if they're still in school. MIFA is the amount of maintenance income that is disregarded under the maintenance income test. Your dependent doesn’t have to be your child for purposes of this credit. However, eligible individuals and ACOs may continue to be paid ES as part of their FTB rate under grandfathering rules. Your dependent must have received more than half their financial support from you over the course of the tax year. For individuals who became new recipients of FTB after 20 September 2016, they will no longer be paid ES after 19 March 2017. The standard rate of FTB Part B is the maximum annual amount payable for a child based on their age without including the supplement and without applying the income test. This is where qualifying can become a bit complicated. This applies until your payment is nil.
Note: For FTB Part A, ATI includes a partner's (1.1.P.30) ATI for the relevant year if an individual is a member of a couple (1.1.M.50). Single parent families with an income of $100,000 or less may be entitled to the maximum rate of FTB Part B. "Child Tax Credit and Credit for Other Dependents at a Glance." If your family net income amount is equal to or exceeds the amount indicated in the table below, you will not be entitled to a GST/HST credit payment. First, you must claim the individual as a dependent on your 2019 Form 1040, Form 1040-NR, or Form 1040-SR, along with their Social Security number or TIN. The Balance uses cookies to provide you with a great user experience. The FTB Part B supplement is part of the maximum rate and base rate of FTB Part B. Thanks to the Tax Cuts and Jobs Act, there's a tax credit that they can still qualify for. Can You Claim Head of Household Filing Status on Your Taxes? ACOs cannot be paid the FTB Part A supplement. Act reference: FAAct Schedule 1 clause 36 Eligibility for MBA, Schedule 1 clause 37 Rate of MBA, Assistance for Isolated Children Scheme Guidelines, 3.1.1.10 Calculating a rate of FTB - overview, 3.1.1.20 Current FTB rates & income test amounts, 3.1.1.34 Sharing FTB for separated couples, 3.1.1.40 Calculating FTB bereavement payment, 3.1.1.50 FTB payments during absence from Australia before 1 July 2016, 3.1.3 Apportioning income test reductions between FTB Part A components, 3.1.4 FTB Part A rate calculation - Method 1, 3.1.5 Maintenance action test for FTB Part A, 3.1.6 Child support assessments & agreements, 3.1.8 FTB Part A rate calculation - Method 2, FTB Part A standard rate (child under 13 years). Nonetheless, Section 151(d)(5)(B) of the IRC retains the exemption amount for purposes of the Child Tax Credit and the Credit for Other Dependents.