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    Common-Law relatives

    My state (TN) is one where common-law habitation is illegal. By contrast, neighboring Georgia recognizes common-law as valid as marriage.

    There are still those who believe this kind of living arrangement is immoral, and I won't raise any arguments against them or for them. But this brings problems for those of us preparing taxes. Movements in the past to define what can (and can't) be done led to a "uniform definition of a child" about 10 years ago. But since then, there is now a complex set of rules for "qualifying relatives" which open the door for dysfunctional family arrangements, but there always seems to be a caveat "if not in conflict with local law."

    In spite of the law, and whatever anyone's opinion of it, co-habitation in Tennessee is omnipresent, discernibly no different than neighboring states. Claiming a common-law dependent in Georgia gives rise to a legitimate deduction, but doing the same thing in Tennessee gives an IRS auditor reason to disallow at least one dependent, maybe more.

    Probably not telling many of you something you don't already know, so I'll have to pose a question:

    Has there been any change in the IRS position on co-habitation? If there is no change in the code, does anyone know whether IRS audit guides have been softened to allow for changing mores and lifestyles? Maybe they're waiting on the Tennessee Legislature to change -- fat chance.

    #2
    At the current rate of change in societal norms, eventually it will be necessary to add such terms as "Step-cousin-in-law" as one of the choices for a "Qualifying Relative".

    (I don't know the answer to your real question, but I'm interested in hearing if anyone can offer experience. Maybe this reply will give it a bump)
    "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

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      #3
      Common law relatives

      Here in MD where common law is illegal I have had no problems as long as the man is listed on the food stamp application and on the birth certificates.

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