Can I file head of household & claim my fiance as dependent on 2007 tax return ?

Question

in 2007, He has bought and sold some stock & made $1700 in his traditional ira, earn $1007 interest on certificate deposit in his traditional ira, he cashed in US saving bonds & earn $1245.60 interest. He lives with me all year long. I claim federal tax withholding as 2, same as state on my paid check. Can I file as head of household and claim him as dependent on my tax return this year 2007 ?

Answer 1

You can't file as head of household. To file as head of household, you have to have a dependent who is closely related by blood or marriage, and your fiance doesn't qualify there.

You might be able to claim him as a dependent though. To qualify, he has to had lived with you all year, his gross income has to have been under $3400 for 2007, he can't have been anyone else's qualifying child or filed a joint return with anyone else, and you have to have provided over half of his support.

The money he made in his traditional IRA's doesn't count unless he took it out, so if your question lists all of his income for the year, and he didn't take out any of his IRA money, his income would just be the savings bond interest and would be well under the $3400 limit.

As for providing half of his support, you'd have to calculate that. There is a form on page 32 of the 2006 publication 17 for figuring support. It will likely come down to how much the bonds were that he cashed, and what other money he might have had that he used for his own support. If you didn't provide over half of his own support you can't claim him.

There's one other requirement that could keep you from claiming him, and it depends on where you live. If there is a law or ordinance where you live that makes your relationship illegal, you can't claim him. Believe it or not, some areas still have laws prohibiting cohabitation by unmarried couples. Even if they are no longer enforced, but are still on the books, you couldn't claim him.

So whether or not you can claim him depends on the above issues.

Answer 2

I assume that your fiance lived with you all year in 2007. If not, you cannot claim him as a dependent.

The next question is: Did you provide over half of your fiance's support? If not, you cannot claim him as a dependent.

The last think to check is his income. The IRA money is not taxed unless he withdrew that money. From your information I do not see $3,400 subject to tax. If he made less than $3,400 then you may be able to claim him as a dependent.

Of course, he needs to meet citizenship requirements and not be filing a joint return with someone else, and not be a dependent of someone else.

However, you cannot file as head of household based on an unrelated dependent. The dependent would have to be a close relative such as a child, parent, or sibling.

Answer 3

The question has already been answered.

A "fiance" (or a cousin) will NEVER qualify you for Head of Household filing status. If you have previously filed as HOH, you need to submit an amended return to the IRS. (Since 2005, adult children haven't qualified anyone unless they made less than $3400.)

The IRA won't be counted unless he cashed out the the IRA; so it sounds like he had $2253 of income. Which meets the gross income test.

You must also meet the following tests:

1. Lived with you all year. This arrangement cannot violate local laws.
2. He must meet the US citizen/resident test.
3. He cannot file a joint return with someone else.
4. His income must be less than $3400 (met).
5. You must be able to show you paid for more than half of his support. If he paid his share of the bills from savings, that doesn't count.

Answer 4

Previously asked and answered.

First off, even if you can claim him as a dependent you can NOT file as Head of Household based upon him. I hope you have not filed as HOH in the past; if you have you will need to amend those returns pronto.

One of the tests he has to meet is less than $3,400 in gross income. The income earned within the IRA does not count. The $1,700 from the stock trades and the Savings Bonds does count. That totals $2,945.60 and if it's his total income then he meets that test.

He must also meet all of the other tests, i.e. lived in your home all year, received more than half of his total support from you, not be the Qualifying Child of another taxpayer, not file a joint return with another taxapyer (except to receive a refund of all taxes withheld) and your relationship must not violate local law.

Assuming that all tests are met it looks as if you can claim him as a dependent under the Qualifying Relative rule. But again, you may NOT file as Head of Household!

Answer 5

There is no DREAM Act, nor will there be one, so that's a non issue. Somebody who works with a work permit (EAD = Employment Authorization Document), whether it's a neurosurgeon on an H1-B visa or a high school drop out who was approved for DACA, and pays income taxes, will be able to file an income tax return.

Answer 6

From a tax standpoint, your best option is to get married before the end of the year. You can then file jointly and claim exemptions for him and you. Your combined tax will be less than your tax alone would be if you remained unmarried until 2008.

Answer 7

Just curious but what method did he use to buy and sell stock cause i'm been trying to find a part-time job for the past 2 weeks so I need to expand my options! lol lol lol ha ha I know this doesn't answer your question but seriously can you give me some tips?

Answer 8

No! (Already answered correctly - thumbs down better amend your returns)

He must be your relative - direct.

Answer 9

No, you may not, unless you are married to him, or you are his legal guardian.

Answer 10

No.