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TAX TALK

The Baltimore Sun

Editor's note: Every Sunday through the end of tax season, The Sun will run an edited transcript of Baltimoresun.com's weekly tax advice column featuring experts from the Sparks accounting firm SC&H; Group answering reader questions. Submit questions at www.baltimoresun.com/taxtalk

My 19-year-old daughter is a full-time student living at home. She began a full-time position in September making $27,000 a year. Should we still claim her as a dependent on our return?

- Carla, Reisterstown

The answer to your question is probably yes. If you provided more than one-half of your daughter's support during 2007, she may not claim herself on her individual income tax return. You should analyze the various education tax incentives available and determine which filing status is correct and most beneficial for the family.

If the company I worked for last year is now out of business, the owner is out of the country and I did not receive a W-2, what should I do about the income I earned?

- Bob, Bel Air

Even though it is the responsibility of your employer to provide you with a W-2, it is your responsibility to file a timely tax return. You should utilize your final pay stub for 2007 and prepare your return using that information or other data available. You should attach a statement to your return, indicating your situation and how you determined the amounts you claimed as wage income and withheld taxes.

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