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IT IS MY BIRTHDAY month, and like everyone else, I am another year older. Below is a list of some of the significant ages that affect your income taxes, health and retirement benefits. Birth. You generally can start claiming a dependency exemption for your child in the year he or she is born. 13. The child care tax credit is available to eligible working parents until the year their child turns age 13. The maximum credit is $600 per child and $1,200 per family. 17. A child tax credit is available until the year a child turns age 17. The maximum credit is $1,000 per child. 18. If you are a sole proprietor, you can employ your child and their wages are not subject to Social Security or Medicare tax until they reach age 18. 19. Your child may continue to qualify as your dependent until the year he or she reaches age 19. If your child is enrolled as a full-time student for at least five calendar months during the year, then he or she can qualify as your dependent until age 24. 21. That UTMA account you set up to gift money to your children terminates and it is technically now their money. An UGMA actually terminates at age 18. 28. Your child can stay on your group health plan until age 28 in Ohio and age 26 in most other states, even if they don't qualif y as your dependent for income taxes. 50. You ca n contribute a n extra $5,500 to your 401(k) and an extra $1,000 to your IR A. 55. You ca n contribute a n extra $1,000 to your Health Savings Account. 59. 5. You won't h ave to wor r y about the 10 percent penalty ta x on early withdrawals from tax-deferred retirement accounts and traditional individual retirement accounts (IR As) once you reach age 59.5. 62. You can start your Social Security retirement benefits as early as age 62, but the benefit amount you receive will be less than your full retirement benefit amount. Full retirement age is 66 if you were born before 1955. If you were born between 1955 and 1959, your full retirement age is age 66 plus two additional months for each year after 1954. Therefore, if you were born in 1956, it's age 66 and four months. If you were born in 1960 or later, your full retirement age is age 67. You can also delay your benefits after your full retirement age and your future benefit goes up about 8 percent per year. 65. If you or your spouse earned enough work credits, you qualif y for Medicare benefits. Also, if you claim the standard deduction instead of item- izing your deductions on your income tax return, you qualify for an additional standard deduction. 70. 5. A f ter you reach a ge 70.5, annual required minimum distributions from traditional IR As and employer retirement plans generally must start. Roth IR As are exempt, however. Mike Livesay is a CPA and principal of We idr ick Li ve sa y & Comp an y in Akron, Ohio. ■ Michael T. Livesay CPA/PFS Happy Birthday! 2 0 1 4 J U LY/AU G U S T ■ M D N E W S . CO M ■ MD NEWS Cleveland/Akron/Canton | 4 1