my girlfriend and I have lived together all year with her 2 kids and I work she dont I am going to claiim her and the 2 kids as dependants would marriage this year make a significant difference come tax time or should I wait till next year??
2006-11-15 18:10:02 · 10 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Assuming the natural father is not a factor, and absent any particulars about your income and lifestyle, the short answer is this. You would generally be better off not married for tax purposes. But this is in no way a hard fast rule. Let me explain.
Your girlfriend and her children all sound as though they would presently qualify as your dependants, which makes you eligible for Head-of-Household status, instead of single. This grants you a more favorable income tax bracket, a higher standard deduction, and an increased opportunity to qualify for the earned income tax credit; than you would qualify for as a single. To qualify for head-of-household, you cannot be married at the end of the tax year.
The Married-Filing-Joint status is slightly more favorable, granting an even higher standard deduction, better tax bracker, and providing certain additional tax perks. However, if you already itemize your deductions, have less than $40,000 in taxable income after your deductions, or aren't using any special perks; then there is no benefit over Head-Of-Household status, and in certain situations could be even worse.
It is also possible that the difference between Head-of-Household and Married-Filing-Joint could be insignificant to you.
Because there appears to be some confusion on this answer board, I should elaborate a few particulars of law.
First, your ability to claim your girlfriend and her children as dependants is a result of passing the dependency tests under the Qualifying Relative standards under IRC §§ 152(b) and (d), as opposed to the Qualifying Child standards most people seem to be referring to that came to be from the Working Families Tax Relief Act of 2004 and the Uniform Definition of a Child. To meet the qualifying relative standard, each dependant must have lived with you for the year and been a member of your household, each made less than $3,300 in 2006, each be a citizen or resident, and each must have received more than half their support from you. Were you to marry, the $3,300 rule and the requirement they live with you would no longer be required.
Your ability to elect Head-of-Household status for Federal tax purposes relies only on whether you have qualifying dependants and that you be unmarried by the end of the tax year.
State law may play a factor. If you live in a common-law marriage State, then you may or must file as married. In my experience, most common-law States require you to live together for five to seven years first. Some States do not recognize common-law marriage at all. In California, for example, there is no common law marriage.
While Head-of-Household status on the Federal tax return may be claimed without regard to State Law, the State tax return may have to be filed as Single, as the standards are not necessarily the same.
2006-11-17 16:09:32 · answer #1 · answered by tax_black_belt 2 · 0⤊ 0⤋
Marriage is not about a tax write off. It's actually a ceremony in which 2 people stand before God and commit to spending the rest of their lives together. This is the reason so many marriages end in divorce. Because they are not entered into for the reason the institution of marriage was created. Good luck buddy! Get the tax break while you can but if the children are young and you stay married more than 2 years before the divorce, you can be on the hook for support until they are 18. I would weigh that against any possible short term gains from the IRS.
2006-11-17 19:06:41 · answer #2 · answered by Joseph Y 1 · 0⤊ 0⤋
If you remain unmarried you would be required to file as a single person and could not take the children as dependents. If you get married before December 31 you can file as married filing jointly and should be able to claim the children. The only reason that you might not be able to claim the children is a right to do so that was granted the father by a court or other proceeding. That issue can get complicated if he (the Father) files before you do even if he does not have a legal right. The IRS approach is first come first serve until proved wrong.
2006-11-16 12:28:34 · answer #3 · answered by ? 6 · 0⤊ 0⤋
Im assuming that the father of the children is not paying child support and not going to claim the children as his dependents for 2006.
You are considered married if you are living together in a common law marriage that is recognized in the state where you now live or in the state where the common law marriage began and the marriage is recognized under federal law. If you are considered married, then you may file as married filing jointly.
you can take the dependency exemptions for qualifying relatives that meet the following criteria:
-any person who lived with you all year as a member of your household if your relationship does not violate local law
-whom you provided over half the support for 2006
-had gross income of less than $3,200
2006-11-16 04:13:01 · answer #4 · answered by tma 6 · 0⤊ 0⤋
The rules changed a while ago.
You can not claim her kids, even if you are supporting them, unless the two of you get married.
You would file as single with only yourself as a dependent. If she didn't work at all, she wouldn't file at all. Who gets to claim the kids???....No one!
She should get a part-time job. This would allow her to file and received the Earned Income Credit.
2006-11-16 09:32:43 · answer #5 · answered by Wayne Z 7 · 0⤊ 0⤋
The rules changed a couple years ago about claiming dependents.
You might want to check with a tax pro as to wether you can claim your GF and her kids or not.
2006-11-16 11:43:58 · answer #6 · answered by nova_queen_28 7 · 0⤊ 0⤋
Check IRS.GOV
I am pretty sure if you can prove they lived with you for the entire year and no one else is going can/will claim them you can. getting married would be a plus, married filing jointly lets you make more money and pay less tax.
2006-11-16 02:22:35 · answer #7 · answered by Red 5 · 0⤊ 0⤋
if you are married this calendar year, you get the tax credit for the entire year. I'm not sure about the kids. I think you would have to be their guardian.
2006-11-16 02:14:04 · answer #8 · answered by Anonymous · 0⤊ 0⤋
That is hard to say because she may qualify for “Earn Income Credit” last year which is up to $4,000.00 refund, but if your marry joint this year, your income will change her EIC. Which will drop and your tax may be lower but so will both of your EIC too.
2006-11-16 08:06:50 · answer #9 · answered by Kenshin 5 · 0⤊ 0⤋
I would work out the numbers. I wouldn't rely on general answers that you get here.
2006-11-16 06:30:08 · answer #10 · answered by waggy_33 6 · 0⤊ 0⤋