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By Britt Burner, Esq.

Britt Burner Esq.

Joan, a 70-year-old woman, visits an elder law attorney and says that her biggest concern is making sure that her house is protected should she need nursing home care. She has two children and wants to make sure they are able to inherit the house after her death. However, Joan also points out that both of her children live out of state with no intention of returning. While they are both married, neither has children. J

oan is hoping that grandchildren will come along soon and knows that if they do, there is a good chance she may want to sell the house and relocate to be near her growing family. Joan is looking for a solution that gives protection to her largest asset, her home, while also providing flexibility in case she decides to move.

Protecting one’s home in a Medicaid Asset Protection Trust (MAPT) is a common planning tool and probably the best option for Joan. The MAPT is an irrevocable trust, meaning that it cannot be revoked unless the creator of the trust, Joan, and the beneficiaries agree. Joan’s children can be the trustees ,but Joan can retain the right to remove them from this position, as well as the right to change the ultimate beneficiaries of the trust. During her life, Joan can also keep the exclusive right to occupy the premises and will be responsible for the property’s maintenance, upkeep and taxes, thus not placing any additional burden upon her children.

Fast forward 5 years and Joan gets the grandkids she has been hoping for and her daughter asks her to move closer to help out. Joan loves the idea, but what about her house?

The trustees can sell the house in the name of the MAPT. Joan’s children, as trustees, will be responsible to handle the sale including signing the listing agreement, contract of sale, and closing documents. Just as if Joan had kept the house in her own name, a $250,000 exclusion from capital gains tax will apply.

The proceeds of the sale must be deposited in a bank account in the name of the trust; the trust sold the house therefore the trust gets the proceeds. From there, the trust can purchase a new house to serve as Joan’s primary residence with the same rules as the prior residence. The protection for Medicaid purposes goes back to when Joan initially put her first house into the trust, so no new clock is set since the assets never left the trust. 

If Joan decides to move in with her daughter, the assets can be left in cash or invested within the trust. Depending on how the trust is written, Joan can receive the income generated by those assets. However, in no case may Joan have access to principal from trust assets. When speaking with the elder law attorney, Joan should be upfront about the potential for a move so her concerns can be addressed. 

It may make sense, if Joan knows what state she is likely to end up in, for an elder law attorney in the second state to review a draft of the trust to make sure maximum protection can be provided whether Joan ends up needing services from Medicaid in that state.

Britt Burner, Esq. is a Partner at Burner Prudenti Law, P.C. focusing her practice areas on Estate Planning and Elder Law. Burner Prudenti Law, P.C. serves clients from New York City to the east end of Long Island with offices located in East Setauket, Westhampton Beach, Manhattan and East Hampton.

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By Michael Christodoulou

Michael Christodoulou
Michael Christodoulou

It’s important to save for retirement, but only half of Americans have calculated how much money they’ll need, according to the 2024 Retirement Confidence Survey by the Employee Benefit Research Institute. Yet without knowing how much you’ll need, it’s hard to know if you’re on track to reach your goals for retirement. Here are a few considerations to help shape your retirement savings strategy. 

Calculate how much you’ll need. You may dream of retiring “comfortably,” but how do you define “comfortable” in terms of actual money? Take the time to outline how much you spend now, and how much you think you’ll spend in retirement. That will help you understand how much you need to save now to afford the retirement lifestyle you want later. A financial advisor can help with building and managing your retirement strategy. 

Start saving now. It’s easy to procrastinate, especially if you are younger and further away from retirement. But the earlier you start, the less you may need to save from each paycheck to build your funds over time. If you’re closer to retirement, you can take advantage of catch-up contributions to most 401(k), 403(b), governmental 457 plans and the federal government’s Thrift Savings Plan. 

If you’re 50 or older, you can save pretax an extra $7,500 to your retirement account beyond the standard total limit of $23,500 allowed in 2025. Those 60–63 years old can contribute to these plans an extra $11,250 above the standard total limit. That’s an annual total of $31,000 for people ages 50 and older; or $34,750 for those 60–63 years old in pretax retirement plan contributions. 

Take the right amount of risk. You may think it’s risky to put money away for retirement instead of keeping it handy for discretionary spending. But the biggest risk of all is not reaching your retirement goal. For example, a portfolio that’s all in cash will have little increasing value over time and won’t provide any growth potential even to keep up with inflation. It’s as if you’re losing money every year. Then again, if your investments are only keeping up with inflation, your money is not growing. Consider growth investments to help build the funds you’ll need in retirement. The key is ensuring you have the appropriate amount of risk — not too much, but not too little — to achieve your growth goals. 

Save separately for emergencies. To protect your hard-earned retirement savings, build an emergency fund separate from your long-term investments. It can help ensure you have what you need to cover surprises like a large auto repair, unexpected medical bills, temporary loss of income from changing jobs or early retirement caused by health issues. 

For most people, three to six months’ worth of total expenses is an appropriate amount for an emergency fund. And you’ll want to keep it in an accessible, low-risk account that holds cash and equivalents. Above all, try to avoid taking money from your long-term retirement investments. Doing so could result in taxes, penalties and reductions to your overall principal investment, all of which could affect your retirement savings. 

What will your distribution strategy be? Having a clear strategy for withdrawing funds from your retirement account to supplement your retirement income is essential. Simply requesting distributions from your financial institution without a structured plan and understanding the following strategies can jeopardize the longevity of your retirement savings. In fact, the risk of outliving one’s assets remains the top concern for retirees. To mitigate this risk, consider doing some research to calculate your reliance rate and understanding the planning strategy named, sequence of return risk. 

These retirement income techniques are utilized by financial advisors who specialize in retirement income planning. Please consult a financial professional who specialized in retirement planning.

Retirement should be an exciting time to enjoy what you’ve worked so hard to earn. Planning for what you’ll need and protecting those savings can help ensure a comfortable future and provide the peace of mind of not outliving your assets. 

Michael Christodoulou, ChFC®, AAMS®, CRPC®, CRPS® is a Financial Advisor for Edward Jones in Stony Brook, Member SIPC.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

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By Britt Burner, Esq.

Britt Burner Esq.

For those who pass away in 2025, the federal estate tax exemption stands at $13.99 million per individual—or nearly $28 million for a married couple. This historically high exemption is a result of the 2017 Tax Cuts and Jobs Act (TCJA), which temporarily doubled the prior $5 million exemption (indexed for inflation).

But there’s a catch: the increased exemption is set to expire at the end of 2025. Without congressional action, the exemption will revert to approximately $7 million per person, adjusted for inflation. This change is already written into the law, so unless Congress intervenes, the reduction is inevitable.

What can be done? Estate planning strategies will vary based on a number of factors, including the types and total value of assets, family structure, access and control considerations, and intended beneficiaries. However, there are several proactive steps individuals can consider now to take advantage of the current exemption before it sunsets:

Because the federal exemption applies to both lifetime gifts and assets transferred at death, one effective strategy is to gift up to the full exemption amount before the end of 2025. Gifting $13.99 million in 2025 removes that amount from your taxable estate, and the IRS has confirmed it will not be “clawed back” later, even if the exemption is reduced.

These gifts can be made to irrevocable trusts specifically designed to protect assets and control how they are used by beneficiaries. Depending on the trust’s terms, beneficiaries may include children, grandchildren, charities, or even a spouse.

In addition to the lifetime exemption, individuals can gift up to $19,000 per recipient in 2025 without affecting their lifetime exemption. These annual exclusion gifts are a simple and effective way to gradually reduce the taxable estate over time. Making charitable gifts, whether made during life or at death through a will, trust, or beneficiary designation, can further reduce your taxable estate while also meeting your philanthropic goals.

For New York residents, planning must address both federal and state estate taxes. Unlike Florida, which has no state estate tax, New York currently imposes estate tax on estates exceeding $7.16 million per person. Importantly, New York does not offer “portability,” meaning a surviving spouse cannot use the unused exemption of a deceased spouse.

To preserve the state exemption, planners often recommend a credit shelter trust (also called a bypass trust). This allows assets up to the exemption amount to be held outside the surviving spouse’s estate, thereby reducing the combined estate tax liability for the family.

Plan now! Even for estates that may not be taxable today, planning ahead can provide significant tax savings and peace of mind. For high-net-worth individuals, early planning is especially critical. While some strategies may require a “wait and see” approach, having a team in place—including a trusts and estates attorney, accountant, and financial advisor— ensures that you are ready to act quickly once the future of the federal exemption becomes clear.

Britt Burner, Esq. is a Partner at Burner Prudenti Law, P.C. focusing her practice areas on Estate Planning and Elder Law. Erin Cullen is a graduate of the Maurice A. Dean School of Law at Hofstra University. Burner Prudenti Law, P.C. serves clients from New York City to the east end of Long Island with offices located in East Setauket, Westhampton Beach, Manhattan and East Hampton.

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By Michael Christodoulou

Michael Christodoulou

Until recently, if you received a pension from a job that did not pay into Social Security and you’ve also worked in a job that did, your Social Security benefits at retirement were reduced based on your pension income. 

As of Jan. 5, 2025, that’s no longer the case, thanks to the Social Security Fairness Act. Now, you’ll receive both your pension and your fully earned Social Security benefits because the Act repealed the Windfall Elimination Provision (WEP).

This new law also repealed the Government Pension Offset (GPO) provision which had reduced spousal or survivor Social Security benefits for people employed in government jobs. These benefits will be increased in 2025. 

There are nearly 3 million people who, depending on their situation, may see their benefits increase – from very little to $1,000 a month or more. Those impacted fall into these professional categories: teachers, firefighters, and police officers in many states; and federal employees covered by the Civil Service Retirement System. 

The Act is retroactive to January 2024, and the Social Security Administration paid an additional lump sum benefit to affected people in March 2025. Going forward, most monthly income “raises” appear on April checks (for March benefits). A few more complex cases may take a little longer.

A word of caution — beware of scammers. The Social Security Administration doesn’t tend to call, email or text; they’ll send a letter regarding changes to your retirement benefits. And they will never ask you to pay for assistance or to have your benefits started, increased, or paid retroactively. But you can call the SSA at 800-772-1213 to ask if your retirement benefits have changed.

Plan for your increased retirement income 

Of course, everyone’s needs are different, so there’s no one “right” way to handle a lump sum benefit or a monthly raise in income. But here are a few suggestions:

Pay off some debts. If you have credit card debt a car or student loan, you may want to pay it down, or even pay it off. 

Invest in an individual retirement account (IRA). If you still have “earned” income – from wages, salaries, tips, bonuses, commissions, self-employment earnings or long-term disability payments – you can contribute from these sources to an IRA. There are tax benefits and an array of investment choices, so it’s an excellent way to build resources for retirement.

Save for college. If you have children, or grandchildren, who have college in their plans, you might want to put some money into a college savings vehicle, such as a 529 plan, which provides tax benefits and gives you great flexibility in distributing the money.

Build an emergency fund. If you don’t already have an emergency fund with three to six months of living expenses, you can work on that. Keep the money in a liquid, low-risk account, so that it’s readily available to pay for unexpected costs. Without such a fund, you may be forced to tap into your long-term investments.

Above all, you may want to get some help. A financial professional can recommend ways of using the money to help you meet your goals. Take any recent government correspondence that shows how your retirement benefits have changed so you can build or review your retirement income strategies. If you’re thoughtful about how you put your new income to work, you’ll be doing yourself, and your retirement, a favor.

Michael Christodoulou, ChFC®, AAMS®, CRPC®, CRPS® is a Financial Advisor for Edward Jones in Stony Brook, Member SIPC.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

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By Michael Christodoulou

Michael Christodoulou
Michael Christodoulou

The financial markets always go through periods of instability. And we may see more of that now, given concerns about tariffs, inflation and the economy. As an investor, how can you deal with this volatility?

Some investors try to take advantage of market ups and downs by attempting to follow the age-old advice to “buy low and sell high” — that is, they seek to buy stocks when they feel prices have bottomed out and they sell stocks when they think the market has reached a high point. In theory, this is a great idea, but in practice, it’s essentially impossible, because no one can really predict market highs and lows. 

Rather than trying to anticipate highs and lows, your best strategy for coping with the price fluctuations of the financial markets is to diversify your investment portfolio by owning a mix of stocks, bonds and other types of securities. Different types of financial assets can move in different directions at any given time — so, for example, stocks may be up while bonds are down, or vice versa. If you only owned one of these types of assets, and the market for that asset class was down, your portfolio could take a bigger hit than if you owned a variety of asset types.

And you can further diversify within individual asset categories. Stocks can be domestic or international, large-company or small-company — and these groupings can also move in different directions at the same time, depending on various market forces. As for bonds, they too don’t always move in a uniform direction, or at least with the same intensity — for instance, when interest rates rise, bond prices tend to fall, but longer-term bonds may fall more than shorter-term ones, which are closer to maturity with fewer interest payments remaining. Conversely, when rates are falling, longer-term bonds may be more attractive because they lock in higher yields for a longer time. Consequently, one diversification technique for bonds is to build a “ladder” containing bonds of varying maturities.

Some investments, by their nature, are already somewhat diversified. A mutual fund can contain dozens, or even hundreds, of stocks, or a mixture of stocks and bonds. And different mutual funds may have different investment objectives — some focus more on growth, while others are more income-oriented — so, further diversification can be achieved by owning a mix of funds.

Furthermore, some investors achieve even greater diversification by owning alternative investments, such as real estate, commodities and cryptocurrencies, although these vehicles themselves are often more volatile than those in more traditional investment categories. 

Financial companies have been designing newer securities which help lower the volatility within the security, while allowing the investor to have upside potential and significant monthly income.

While a diversified portfolio is important for every investor, your exact level of diversification — the percentages of your portfolio devoted to stocks, bonds and other securities — will depend on your individual risk tolerance, time horizon and financial goals. I highly recommend you consult with a financial professional about creating the diversified investment mix that’s right for your needs. The tools available today for investors have significantly changes to help manage the volatility. 

Ultimately, while diversification can’t guarantee profits or protect against all losses, it can help you reduce some of the risks associated with investing and better prepare you to deal with the inevitable volatility of the financial markets — two key benefits that can help you over the many years you’ll spend as an investor.

Michael Christodoulou, ChFC®, AAMS®, CRPC®, CRPS® is a Financial Advisor for Edward Jones in Stony Brook, Member SIPC

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

 

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By Britt Burner, Esq. & Brittni Sullivan, Esq.

The biggest concern that most have when they are in need of long-term nursing home care is that their primary residence will not be protected. This may or may not be true.  There are special rules surrounding the home that are different than other types of assets. 

To understand this fear, it is important to understand how one becomes eligible for Medicaid to assist with nursing home costs.  The applicant is permitted to have countable assets in the amount of $32,396, retirement assets in any amount so long as the retirement account is set up for a monthly distribution, and a pre-paid irrevocable burial.  

Applying for this program also involves a five-year lookback. This requires the applicant and spouse to provide full financial disclosure for the five-year period immediately prior to institutionalization. The purpose of the lookback is to see if the applicant or spouse transferred any assets out of their names.  If transfers were made, there will be a legal presumption that this was done for the purpose of applying for Medicaid, and a penalty will be assessed. The penalty will result in a time of ineligibility for services. 

However, there are certain transfers that are exempt and will not draw a penalty, this includes transfers of any assets to a spouse or to a blind or disabled child.  Specifically for the primary residence, transfers are exempt when made to a spouse, blind or disabled child of the applicant, a sibling with an equity interest in the home, or to a caretaker child. 

A caretaker child is defined as a child who has resided in the primary residence with the Medicaid applicant for the two years immediately prior to institutionalization and who, during that time has provided some level of care support to the individual who requires nursing home care.  Medicaid will closely scrutinize the transfer and ask for supporting documentation to prove residency for the caretaker child.  

For several reasons, this type of planning is best used in crisis planning and is not an advanced planning technique. First, there may be adverse tax consequences when you transfer the real property to the caretaker child.  Second, transfer to the caretaker child could thwart your estate plan to leave assets to multiple beneficiaries. Last, the transfer to the caretaker child can only happen immediately prior to your institutionalization.  Therefore, if the child is moved out at the time you require nursing home care, the exemption is lost.  

The fear of losing the home is common. Planning in advance can help ensure the primary residence is protected.

Britt Burner, Esq., Partner at Burner Prudenti Law, P.C., concentrates her practice in Estate Planning and Elder Law. Brittni Sullivan, Esq., Senior Associate at the firm, also focuses on Estate Planning and Elder Law. Burner Prudenti Law serves clients from Manhattan to the east end of Long Island with offices located in East Setauket, Westhampton Beach, New York City and East Hampton.

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By Michael Christodoulou

Michael Christodoulou
Michael Christodoulou

Going through a divorce is emotionally painful and can disrupt one’s life in many ways — but does it also have to be financially devastating? Not necessarily. You can help yourself greatly by making a series of moves. Here are some to consider: 

Before the divorce is final …

Determine how you’ll cover the cost of the divorce. To meet the costs of a divorce, which can be tens of thousands dollars, you may need to tap in to your income stream and savings accounts, or even explore alternative options, such as borrowing from your retirement plan, if it’s allowed by a divorce court judge.

Create a budget. You may want to build a temporary budget. Your divorce attorney can advise you on how long your separation period may last in a contested case.

Start building separate bank and brokerage accounts. Consult with your divorce attorney on ways to establish independent bank and brokerage accounts without harming your spouse.

Understand your retirement benefits. Know the value of your and your spouse’s 401(k) or similar plans, IRAs, pensions, stock options and other employer benefits. Also, you might need to negotiate the splitting of retirement benefits through a qualified domestic relations order (QDRO). A tax professional and a financial advisor can help you understand how different QDRO proposals can affect your retirement goals.

After the divorce is final …

Finish building your separate financial accounts. You may want to close any joint accounts or credit cards, change online access to financial accounts, remove your name from bills for which you are no longer responsible and complete any agreed-upon asset transfers, such as dividing retirement assets. 

Create a new budget. You can now create a longer-term budget, incorporating any spouse or child support you receive as income. You may also need to adjust your spending to reflect items in the divorce agreement, such as expenses now covered by your former spouse and court-ordered responsibilities for paying college education expenses for dependent children and possibly the attorneys’ fees for a former spouse.

Review your protection plans. You may need to review your life, homeowners and auto insurance policies. And if you were covered under your spouse’s health insurance plan, you may want to apply for COBRA to stay on that plan up to 36 months or switch to your own employer’s plan, if available. If you don’t have access to an employer’s health insurance, you may want to explore a marketplace plan from the Affordable Care Act or contact a health insurance broker.

Review your estate plans. To reflect your new marital status, you may need to work with your legal professional to change some of your estate-planning documents, such as a will, living trust, advanced health care directive or power of attorney. Also, review the beneficiary designations on life insurance policies, IRAs, annuities and investment accounts, as these designations can likely supersede instructions on your will or trust. 

See your tax professional. You may need to consult with your tax professional on issues such as changing your tax return filing status, claiming a child as a dependent and dealing with tax implications of assets received in the divorce.

Going through a divorce is not easy — but by taking the appropriate steps before and after the divorce is finalized, you can at least help put yourself in a more secure and stable financial position to begin the next phase of your life.

Michael Christodoulou, ChFC®, AAMS®, CRPC®, CRPS® is a Financial Advisor for Edward Jones in Stony Brook, Member SIPC.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

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With flowers blooming and birds chirping, you may be in a spring-cleaning mindset. As you spruce up your home, you can also channel that energy into getting your finances in tip-top shape!

According to CERTIFIED FINANCIAL PLANNING® professionals, here’s how to clear away the cobwebs in your budget:

Sort expenditures: If you’ve ever sorted your clothes and other items into piles during a spring clean, this budgeting principle will be familiar to you: Review your expenses and categorize them into needs, wants and expenditures you’re ready to part with. Whether you do this on paper or electronically, use a color-coded system to visualize where your money is going.

Review your streaming services: Electronic subscription bloat is common, as is paying for forgotten subscriptions after free trials end. For example, you may be subscribed to several of the most common entertainment streaming services, such as Netflix, Max and Hulu. Do you really need all of them? Whether it’s an online newsletter or a music streaming service, cancel unused subscriptions.

Avoid bank fees: Review your bank statements. Are you getting dinged with fees? Consider switching to a bank that doesn’t charge an account maintenance fee. You can also set up notifications to avoid having your account get hit with an overdraft. If you do get charged, contact your bank to explain your situation — you may be able to have some fees waived.

Switch insurance carriers: Periodically review your insurance rates, and shop the market to see if better rates are available for home, automotive and other forms of insurance.

Reduce debt: If your debt is costing you a pretty penny, it’s time to act. A CFP® professional or credit counselor can help you craft a plan for consolidating debt into lower-rate credit card accounts, refinancing your mortgage and reducing your overall debt burden. You should also automate credit card payments (and other bills) to ensure you aren’t paying late fees.

Pay yourself first: Earmark a portion of your budget to savings and investments each month. This will leave you with more money for your important goals and less for frivolous spending.

This spring, go beyond dusting the baseboards and mopping the floors. Refresh your finances for a fresh start to the season. (StatePoint)

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By William Stieglitz

With the end of President Donald Trump’s (R) 30-day pause for tariffs on Canada and Mexico fast approaching, TBR News Media spoke with local business owners regarding their thoughts on the tariffs. Explained simply, the tariffs would increase the cost of goods imported from each country by 25% (with energy imported from Canada taxed at 10%), a concern relevant to local businesses that rely on such goods to operate. These come in addition to other recent tariffs placed by the newest presidential administration, such as 10% levy on Chinese goods. When asked for their thoughts, both interviewees spoke first on the impact of past tariffs.

Claudia Dowling, owner of Claudia Dowling Interiors in Huntington, describes how the 2019 tariffs cost her “well over 30%” of her profit for that year. “Having written an order for a client, I felt it necessary to keep to the original pricing we agreed on. However, after the product arrived and [was] delivered, my final invoice … had one to sometimes three tariffs added.” 

She elaborated how in the years since COVID–19 hit, freight costs became especially high, making it hard to turn a profit, and how this could be further inflated by new tariffs. And while larger companies can reduce these costs by relying on Amazon, she said this was not an option for smaller businesses like hers. 

“I have to eliminate many vendors making it impossible to fill my store. It goes on and on. The small business community is in more trouble than ever.” While she has been in her business for 50 years, she is now concerned about staying afloat.

Howard Stern, owner of East Bay Mechanical Corp. in Yaphank, has already seen his business impacted by the separate proposed 25% tariffs on steel and aluminum set to start on March 12. He described how even though he relies on domestic steel, he has seen those prices already go up in response, resulting in an approximate 20% increase in his metal costs. 

“It affects washing machines, it affects AC units, it doesn’t just affect the sheet metal … but everything that goes along with it, because everything requires metal and, unfortunately, it goes up but it never comes back down … even when the tariffs are lifted,” he said.

Stern also describes how tariffs affect costs at each step of the way “so by the time the end consumer gets on it, that 20% in raw material has been stepped on three to four times by four different people, so the end consumer is paying that tariff four times.” 

According to both the January Navigator Research Poll and the February Harvard Caps/Harris poll, approximately three in five Americans expect new tariffs will increase costs for consumers. The Navigator polls indicate a slim majority believes tariffs will be worthwhile if they can protect American manufacturing and jobs, but also that a majority believes the tariffs will hurt American consumers more than foreign countries. Further costs to Americans could come from retaliatory tariffs too, as Canadian Prime Minister Trudeau previously promised to implement.

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Some people look forward to filing their tax returns, while others recoil at the thought of paying what they owe. Regardless of which camp taxpayers are in, come April most people have a question or two related to their returns. As the deadline to file tax returns draws closer, taxpayers hoping to make the process as smooth as possible can consider these frequently asked questions and answers, courtesy of the Internal Revenue Service.

When is deadline day? Though taxpayers periodically get an extra day or two to file their returns when April 15 coincides with a holiday or lands on a weekend, there’s no such reprieve in 2025. This year all taxpayers who are not requesting an extension must file their income tax returns by April 15, 2025.

What if my address has changed? The IRS urges all taxpayers to use their new address when filing their returns. Additional ways taxpayers can update their address with the IRS is through the filing of Form 8822, Change of Address or Form 8822-B, Change of Address or Responsible Party-Business. Written statements or oral notifications are additional ways to notify the IRS of an address change, and these methods must include personal information, including the old and new address as well as the taxpayer’s Social Security number, Individual Taxpayer Identification Number (ITIN) or Employer Identification Number (EIN).

Is there an age limit on claiming my child as a dependent? A child must meet either the qualifying child test or the qualifying relative test in order to be claimed as a dependent. To meet the qualifying child test, your child must be younger than you or your spouse if filing jointly and either younger than 19-years-old or be a “student” younger than 24-years-old as of the end of the calendar year.

There is no age limit to claim a child as a dependent if a child is “permanently and totally disabled” or meets the qualifying relative test. In addition to meeting the qualifying child or qualifying relative test, you can claim that person as a dependent only if these three tests are met:

1. Dependent taxpayer test

2. Citizen or resident test, and

3. Joint return test

Taxpayers who remain uncertain about their eligibility to claim a child as a dependent are urged to contact the IRS or a tax preparation professional for clarification before filing their returns.

What should I do if my W-2 is incorrect? Employers must provide employees with a W-2 by January 31. If the W-2 is incorrect and has not been fixed by the end of February, taxpayers can contact the IRS and request to initiate a Form W-2 complaint. When such a request is initiated, the IRS sends a letter to the employer and requests that they furnish a corrected W-2 within 10 days. The IRS also sends a letter to the taxpayer with instructions and Form 4852, which can be used to file a return if a corrected W-2 is not provided before the filing deadline.

How can I file for an extension? There are three ways to request an automatic extension of time to file an income tax return.

1. You can pay all or part of your estimated income tax due and indicate that the payment is for an extension using your bank account; a digital wallet such as Click to Pay, PayPal, and Venmo; cash; or a credit or debit card.

2. You can file Form 4868 electronically by accessing IRS e-file using your tax software or by using a tax professional who uses e-file.

3. You can file a paper Form 4868 and enclose payment of your estimate of tax due (optional).

Tax day arrives on April 15. Taxpayers who have lingering questions about their returns are urged to contact the IRS via irs.gov or work with a certified tax professional.

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