Dependent Sharing and Comparing Return Results

Please see the Families are Complicated Deeper Dive to learn about dependent sharing and how to most easily use TaxSlayer to evaluate.

Instructions:

1. Ensure both TP returns are QR'd before beginning.
   • If there's an error in either return, it may affect which dependent assignment provides the most beneficial combined result.
2. Enter taxpayer information including names and Adjusted Gross Income (AGI)
3. Add dependent information including names, birth dates, and which taxpayers they qualify for
4. Review the categorized dependents (not shareable vs shareable)
5. Use the Oregon Kids Credit calculations to determine optimal dependent sharing
6. Compare results in TaxSlayer to determine the best filing strategy
7. Document your findings for the taxpayer

Notes:

• If only one taxpayer will be able to get the Oregon Kids Credit, that taxpayer should claim the child(ren) in question.
• If a dependent is not shareable, they should not be included in the dependent sharing analysis.
• Oregon Kids Credit note: If one of the shareable children is under 6, then assign that child to the TP that will receive OKC (see Getting Started worksheet bottom right)

Other Considerations:

• Consider the impact on other tax credits and deductions when determining dependent sharing
• Evaluate the effect on filing status and standard/itemized deduction choices
• Review eligibility for education credits and other dependent-related benefits
• Document the reasoning for the chosen dependent sharing arrangement

Scenario Comparison Process:

1. Fill in refunds and filing status for each TP in the first chart (QR'd returns)
2. Modify the scenario by moving one shared child from TP1 to TP2
3. Fill in filing status and refunds for the new scenario in the next chart
4. Repeat until all scenarios are completed
5. Compare "Total Combined Refund" amounts to find the best situation
6. Ensure each dependent appears on only one tax return when finalized

NOTE: For a tutorial on using TaxSlayer to "remove" a child from TP1's tax return without deleting the child, please see the tutorial at: Dependent Sharing tutorial: Lily Green