Filing 2006 Taxes - Married filing Separately & Claiming A Step Child?

Question

My husband & I separated in March of 2006; he is filing “married filing separately.” He’s asked that I allow him to claim my daughter from a previous marriage as a dependent on his taxes being he has claimed her the past 8 years and is one of his exemptions. (For withholding purposes.)


I am filing “head of household.” I have a son from a previous marriage who is a full-time college student and I claim him as my dependent. (I have prepared my taxes through TaxCut and going through the steps, since he is under 24 and a full time student he would qualify as my dependent under filing “head of household”. My total income for 2006 is $6515.00.)


(What I am asking is, there is nothing wrong with allowing my soon to be ex to claim my daughter from a previous marriage, so he does not get screwed over on his taxes, since he has been claiming her as an exemption. It doesn't affect my refund much by not claiming her myself, but will make a difference of him owing or getting a refund.

Answer 1

Step-children are treated like biological children for tax purposes. You can sign over your exemption for your daughter to him. Fill out form 8332 and give him a copy - he'll attach it to his return.

For children, the support test is no longer did the parent provide more than half of the support - rules have changed, and he'd be under the rules for divorced and separated parents - it's did the child provide more than half of their own support, which I assume your daughter did not.

It's refreshing to hear a question from someone trying to be civil. Far too often, questions have more the tone of "how can I screw my ex as badly as possible on his/her taxes."

Answer 2

This is a complex issue, but I'll try to make it as simple as possible.

Your daughter from a previous marriage is considered a dependent of your soon-to-be-ex-husband IF she meets ALL the following two tests (I've simplified them for this example):

1. Member of household or relationship test:

She must have lived with him the entire year OR be related to him. Stepchildren ARE considered related.

2. Support test:

Generally, you need to provide over half of the person's support during the year.

However, IF you have full custody of your daughter and you and your ex-to-be were married for the entire year, you are considered her "parents" for tax purposes, and you can complete Form 8332 or write a written statement that your husband can attach to his tax return that states that you will not claim an exemption for your daughter.

The fact that he claimed her previously is not relevant.

There is nothing wrong with you allowing your soon-to-be-ex-husband to take your daughter as a exemption.

There are three other tests, one involving the child's gross income, one involving her Gross Income, one involving her Citizenship, and one involving whether the child is married and has filed a joint tax return, which appear not to apply.

Now given all of the above, and the fact that it appears that you and your soon-to-be-ex-husband seem to get along, why don't you file a joint return, if it will save on taxes?

In any case, I'd ask your husband to share some of the tax benefits he will receive with you, especially given your gross income.

If you allow him to take your daughter as a exemption, why doesn't he file as Head of Household, as well, if you don't file jointly?

Good luck!

Answer 3

whoever takes care of this child for 6 months or more has the ability to claim the child. This should have been settled in the divorce proceedings.