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Evaluate a Year-Round Tax Plan
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DSST
DSSTPF.150 Evaluate a Year-Round Tax Plan
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A taxpayer realizes midyear that a dependent may no longer qualify because of support and residency changes. Which sequence best handles the tax plan?
A
Keep claiming the dependent in the projection because the taxpayer claimed them last year.
B
Remove all withholding because credits are uncertain.
C
Reevaluate dependent eligibility, update credits and filing status assumptions in the projection, and adjust withholding before year-end if the credit estimate falls.
D
Wait for the IRS to decide eligibility after filing.
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