Did you know that in 2005 The irs changed the rules for EIC payments?

Question

My daughter and her boy friend lived together the boyfriend worked and took care of her and the kids no child support was paid then. He claimed the kids on his taxes and now he is being penalized for it.You have to be married or blood related to claim dependents on your income tax return.

My daughter and the same guy is expecting their baby in April my hats off to him for not leaving after a bill for six thousand dollars from good old uncle sam.

Can he ammend his taxes and change head of household to single and if he can do u know how to go about doing it?

He filed single and just found out they are still fighting with the IRS Thanks everyone

Answer 1

Yes, I did know, but then I am a tax professional and it is my job to know things like that. Did he pay someone to do his return? If so, and if the IRS are going to ban him from receiving EIC for up to ten years, may I suggest that he considers a lawsuit against whoever prepared his 2005 return?

Frankly, he is not guaranteed to win (the preparer would likely say that the client signs the return and takes responsibility for it). However, if he is going to lose a five-figure sum over ten years he may have a case for negligence, as the other returns haven't actually happened yet.

Answer 2

It is not true that you have to be married or blood related to claim dependents on your tax return. If someone lived with you all year, you provided more than half of their support, they didn't make over $3300 for the year (that's for 2006 - for 2005 it was $3200, changes every year), and they aren't claimed by anyone else who is also eligible to claim them, then you probably can.

But just because they're dependents doesn't mean that they qualify you for head of household status, or for the EIC. I'm guessing that's where your daughter's boyfriend ran afoul of the IRS.