At the beginning of 2006, my friend moved in with me. I rented my basement out to her for $100/week. She is a single mother and had gotten evicted from her apartment with no where to go. About half of the year, she failed to pay me. I need to know if I am able to claim her as a dependant on my taxes. I know that she will never have the money to pay what she owes (over $2,000). She also had been working part of the year at minimum wage. Am I able to do this? Technically, she has been under my roof and using my utilities. She is 27 years old. Please help! I am also a single mother, and this situation has put me in a bind also!
2007-01-23 01:57:11 · 2 answers · asked by megmb3 2 in Business & Finance ➔ Taxes ➔ United States
Doesn't sound like you can. If she made over $3300 in 2006 in gross income, then definitely not. And if she moved in sometime in 2006, unless it was January 1, she would not have lived with you ALL year so you could not claim her. And since she's been paying you rent, even though not all the time, would argue against it also.
Also, be real careful here - what she's paid you in rent would probably be considered as taxable income to you. You might not want to open that can of worms.
Good luck.
2007-01-23 03:44:04 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
No because she would then not be able to claim her earned income credit to get a nice refund. If she had no earned income and did not file then the answer would be yes if she lived with you the whole year which is not clear when you say beginning of 2006.
2007-01-23 10:08:52 · answer #2 · answered by spicertax 5 · 0⤊ 0⤋