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Lev
Lev, Tax Advisor
Category: Tax
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Experience:  Taxes, Immigration, Labor Relations
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Here is my my situation... Unmarried couple living together

Resolved Question:

Here is my my situation...
Unmarried couple living together with a minor child (18 months old);I also have 2 other dependants for whom I pay college tuition fees for.

We both work and pay child care fees equally. please see my questions below:

1. would our child be a qualifying child for both of us?
2. can we both claim HOH?
3. can we spit the costs for child care evenly on our returns?
4.
Submitted: 7 years ago.
Category: Tax
Expert:  Lev replied 7 years ago.

1. would our child be a qualifying child for both of us?

Yes - the child will be a qualified child for both parents as they are living together

2. can we both claim HOH?

To qualify for a head of household status - the person should provide more than half of household support - because a couple are living as one household - only one may be a head of household.

3. can we spit the costs for child care evenly on our returns?

No - only one person may claim child care deduction - and only if that person claims the child as a dependent.

 

Let me know if you need any help or clarification.

 

Customer: replied 7 years ago.

1. would the child be a dependant for both of us-- Me filing HOH and he filing single?

2. do you use the special rule or the tie-breaker to determine dependancy?

 

 

 

Expert:  Lev replied 7 years ago.

1. would the child be a dependent for both of us-- Me filing HOH and he filing single?

Yes - the child will be a qualified child for both parents as they are living together - but you may not both claim the same dependent - you need to decide between yourselves who will claim the child.

But only the parent with higher AGI is generally a head or household.

 

2. do you use the special rule or the tie-breaker to determine dependency?

Yes - there are Tiebreaker rules. There rules are used if both persons are eligible to claim a child, but could not agree. To determine which person can treat the child as a qualifying child to claim these six tax benefits, the following tiebreaker rules apply.

  • If only one of the persons is the child's parent, the child is treated as the qualifying child of the parent.

  • If the parents do not file a joint return together but both parents claim the child as a qualifying child, the IRS will treat the child as the qualifying child of the parent with whom the child lived for the longer period of time during the year. If the child lived with each parent for the same amount of time, the IRS will treat the child as the qualifying child of the parent who had the higher adjusted gross income (AGI) for the year.

  • If no parent can claim the child as a qualifying child, the child is treated as the qualifying child of the person who had the highest AGI for the year.

  • If a parent can claim the child as a qualifying child but no parent does so claim the child, the child is treated as the qualifying child of the person who had the highest AGI for the year, but only if that person's AGI is higher than the highest AGI of any of the child's parents who can claim the child. If the child's parents file a joint return with each other, this rule can be applied by dividing the parents' combined AGI equally between the parents.

  •  

    See IRS publication 501 page 15 for examples of using tiebreaker rules - http://www.irs.gov/pub/irs-pdf/p501.pdf

    Let me know if you need any help.

     

    Customer: replied 7 years ago.

    My AGI is higher, but I also have two other dependants that I claim-- I paid college tution for each.

    If I understand you correctly my youngest child father who lives in the same household cannot claim our child because my AGI is higher?

    Expert:  Lev replied 7 years ago.

    If I understand you correctly my youngest child father who lives in the same household cannot claim our child because my AGI is higher?

    I am not sure what made you think that way - I will repeat my answer from above - the child will be a qualified child for both parents as they are living together - but you may not both claim the same dependent - you need to decide between yourselves who will claim the child.

    Thus - either of you may claim the child but you may not both claim the same child.

    Let me know if you need any help.

     

    Customer: replied 7 years ago.

    So the parent that claims our child as a dependant must file HOH? or is filling Single acceptable?

     

     

    I apologize but I am getting confused.

    Expert:  Lev replied 7 years ago.

    If the person have a qualified dependent - that person is not necessary a head of household.

     

    Requirements to use a head of household filing status are different from requirements to claim a dependent.

     

    First of all to use the head of household filing status the person should provide more than half of total annual household support. Second that person should have a qualified dependent. If one parent claims the child as a dependent - the same child may not be used by another parent to use a head of household status.

     

    Please feel free to ask for clarification as long as you need.

     

    Customer: replied 7 years ago.

    Okay got it.

    Please explain why child and dependant care credit was not added and additional child tax credit was added, this per What did i miss, if anything? filing status is Single.

     

    <table border="0" cellspacing="0" cellpadding="2" align="center">id="r1">$11,804Adjustments: $500Adjusted gross income: $11,304Deductions: $5,700Exemptions: $7,300Taxable income: $0Tax: $0Alternative minimum tax:$0Credits: $0Other taxes: $0Payments: $4,525Underpayment penalty:$0Refund: $4,525

    Expert:  Lev replied 7 years ago.

    A dependent care credit is not refundable credit - you may claim it only to reduce your tax liability, but because your taxable income and tax liability are zeros - there is no way to use that credit.

    An additional child tax credit is a refundable credit - you are getting it even you do not owe any taxes.

    So far - I do not see any issues with your filing.

    Your refund generally should be a combination of an additional child tax credit, earned income credit, making work pay credit and your paycheck withholding.

     

    Let me know if you need any help.

     

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