How much is Malaysian income tax for others?

Claiming others on your income tax?

• So it's that time of the year again and I'm having the pleasure of filing out my taxes for the very first time! (I've previously worked off the books etc.) Along with all the questions, forms and procedures it seems now that I'm facing a bit of a situation with claiming others on my income tax. My mother has suggested that I claim my newborn niece and nephew on my taxes since I live with them and both their mother and father didn't do so themselves. Now, my question is, how exactly does this sort of procedure work? In other words, how does it affect what your return is? But what's of more concern to me is whether this is legal and whether this affects any financial forms I fill out in the future such as if I were to fill out required forms for financial aid (as I'm still an undergrad). Any feedback is appreciated!

• Answer:

  In order for you to claim a dependent, *you* can't be a dependent yourself. If you are age 23 or younger and were a full time student, lived at home (being away at school counts as being at home) and did not support yourself, then you are a dependent to your sister/brother and can't claim these babies. Check IRS publication 501 and fill out the support test worksheet. That will help you determine if you are a dependent or not. If you are able to file as an independent adult, be absolutely sure that you are eligile to claim these newborns. The IRS routinely asks for proof that you all lived at the same address and that these babies are in fact the blood relatives to you. If you can provide this proof fine. If you can't provide this proof when the IRS asks, you can be banned from the EIC program for 2 or 10 years.