I always have filed single, I have no kids and I usually claim one (myself) or zero. My friend lived with me for this past year for about eight to nine months. Can I claim her and her kids is this legeal? with a major change this I dont want to get audited. Please Help!
2007-01-02 08:53:15 · 5 answers · asked by Renee in Texas 1 in Business & Finance ➔ Taxes ➔ United States
If you provided more than half of their support, you should be able to file Head of Household and claim them as dependents. You should just clear that ahead with your friend, so you are both on the same page. If you both are claiming the children as dependents, that is a easy way to find yourself audited.
2007-01-02 09:02:58 · answer #1 · answered by nickfromct 3 · 0⤊ 3⤋
As long as you are following the law then you should not worry one way or the other if you get audited. In this case, you have cause for concern. If they are not related to you in anyway then they have to live with you in your home for the entire tax year and your relationship with their mother cannot violate any local law or ordinance. That's one criterion. In addition:
1. None of them could have made $3300 or more in gross taxable income.
2. They would have to be US Citizens, Nationals, Residents, or residents of Canada or Mexico.
3. None of them could be married and filing a joint return.
4. You would have had to provided over 50% of their support.
5. The children cannot be your qualifying children or the qualifying children of anyone else.
Also, even if you did meet all this criteria and could legally claim them as dependents, you would still not be able to file as Head of Household as someone wrongly suggested if they are not related to you. Qualifying relatives they may be if you met all the criteria, but not for HoH filing status.
2007-01-02 09:30:49 · answer #2 · answered by Mr. Zimmer 3 · 1⤊ 0⤋
If you calim your friend and her children, you run a significant chance of being audited by the IRS.
You cannot claim her children for the Earned Income Credit or Child Tax Credit because you are not related to them by blood or marriage, and you did not have legal custody of them during 2006.
Effective with tax year 2005, the tax laws for claiming a dependent changed. The person must meet the rules to be either your 'Qualifying Child' or 'Qualifying Relative'. A 'Qualifying Child' is a child to whom you are related (blood, marriage, adoption, legal guardianship, foster child), who lived with you for more than six months and who did not provide more than half of their own support.
A 'Qualifying Relative' (in a nutshell) is someone who is not a 'Qualifying Child' of anyone else, who lived with you for the entire year, who had no income or income less than $3,300 and is someone for whom your provided more than half of their total support.
Since you are not related to your friend or her children, they are not consdered to be your 'Qualifying Children'. You cannot claim her children as your 'Qualifying Relatives' because they are your friend's 'Qualifying Children'.
Don't take the chance on claiming them and getting back $3K or $4K and having to pay it all back to the IRS plus interest. Your SSN may be flagged and you may face future IRS audits the next time you claim dependents, even if they are your own children.
2007-01-02 18:59:21 · answer #3 · answered by ck10581 1 · 0⤊ 0⤋
Mr. Zimmer missed the 'Member of household test". To claim an non-relative as a dependent the must live with you the entire year. If they continue to live with you all of 2007, you can claim probably claim them. For 2006, I believe you fail the member of household test.
2007-01-02 11:57:09 · answer #4 · answered by STEVEN F 7 · 0⤊ 1⤋
Since they didn't live with you for the entire year, no, you can't claim any of them, even if you provided the majority of their support for the year. Sorry.
2007-01-02 15:17:09 · answer #5 · answered by Judy 7 · 0⤊ 0⤋