[LaydCC]

Good Morning
The question I have is as follows:
I'm on SSI for myself and are receiving Public assistance for my 3 children.
I have been told that I can file taxes and claim my children. I don't want to go on heresay so I'm wondering if there is any validity to this info that people are giving me.

[de_de_gc]

LaydCC,

For federal purposes, you should at least calculate an income tax return with your SSI income being disclosed, especially if you have ANY other income. Your other income and SSI benefits may not reach the point of being taxable, but having that return filed with a $0.00 amount owed or due may help you avoid filing issues later. (I KNOW that there are a lot of people who disagree with me on filing a return even when a return is not REQUIRED. If you are really interested in why my OPINION differs from some, let me know.)

To my way of thinking, the biggest obstacles (or points to be aware of) for your returns are: (1) Head of Household (HH) filing status requirements would need to be looked at very carefully. If you receive public assistance in excess of 50% of the cost to maintain the home, you cannot file HH. (2) IF you do not supply more than 50% of the support for you children (public assistance does not count), you cannot claim the dependency deduction for your children. Note-this 50% test is not the same as the 50% test at point number 1. (3) Point 2 above affects your ability to potentially get the child credit or an EIC.

Please do let me know if you need more information.

[AtlantaTaxExpert]

There is also the economic stimulus rebate to consider. You may qualify for it even if you have no legal requirement to file, but you MUST file to get the rebate check.

[de_de_gc]

Very good point.