Family Situation

[erchess]

My client is an adult male who lived all year with but is not married to a woman and her three children who are not biologically or by adoption his. However she apparently realized that her maximum refund for '10 was achievable with only two of the children so she told him he could claim the third child. There was no consent form involved but he tells me she will sign one. He says that the two adults split the costs of the household evenly which seems to me to mean he is supporting one of the kids and as best I can figure they are free to decide which one he carries for tax purposes.

They apparently went to different tax services but he got advised that he could call the child his niece and did not need anything from the mother. He also got filed HOH with the same address as was shown on her return. I am pretty sure he got EIC but I have not seen his paperwork yet. Here's what I am thinking - tell me if I'm wrong.

1. The household can have only one head and that should be the adult with the higher agi.

2. Even if he files single, if he gets the 8332 signed he can claim her as a dependent but he can't claim EIC based on her since she is not related to him by blood or marriage and he can claim the child tax credit.

[JoshinNC]

The child(ren) is/are not his dependent(s)

under the qualifying child or qualifying relative tests. Also, in NC it is a violation of NC law to co-habitate, so the mother of the children also cannot be his dependent.

His niece! What a crock!

[Jesse]

Even with the 8332 he can not claim the child, this form can only be used for parents to allow noncustodial parent to claim child if the custodial parent agrees.

[erchess]

TY Both

I should have remembered that the release of claim is only to the noncustodial parent.

When I started in this business the girl would have met the definition of a Foster Child but that changed years ago.

[ttbtaxes]

If I live to be 100 I'll never remember the answers to all of the permutations of the dependent exemption, EIC and HOH without looking them up every time.

How does someone, who isn't a tax pro, wade through it without guessing? Answer, they don't. It's pure luck or mere guess.

[S T]

As a tax pro

I have to revisit this subject every year, and run through all of the scenarios, and then trying to obtain the right answers from the client

So I rely on TTB chart, CFS Tax Tools (has a flow chart Q &A) and of course the IRS pub

and hope that the client provided the right information, after a "multitude of questions"



This should just be easier! I am always happy to see different scenarios and answers posted on this Board - as it gives a lot of guidance.

Sandy

[veritas]

They use the

If I live to be 100 I'll never remember the answers to all of the permutations of the dependent exemption, EIC and HOH without looking them up every time.

How does someone, who isn't a tax pro, wade through it without guessing? Answer, they don't. It's pure luck or mere guess.

Geithner/Turbo rule. That is push whichever button gets you the best results.

[JohnH]

How does someone, who isn't a tax pro, wade through it without guessing?

It's easy.
They just call someone their niece if it gets them a bigger refund.
No guesswork needed there.

[JG EA]

...he could call the child his niece...

So, he lives with his sister.

Or, Oh he lives with his sister.

[JenMO]

I have a similar situation- I read if the mother has to file and is eligible to claim the child then no one else can. Is that correct?

[erchess]

Exception

Jen I think the mother can ALWAYS release the exemption to the Parent or to any adult who lived with the child all year. I could be wrong.

And wait a minute people. My client LIVED ALL YEAR with the child and Mom. Doesn't that let her be a qualifying relative? See the quote below and sorry I did not make this clear. His relationship with the CHILD does not violate the law.

• Any other person (other than the taxpayer’s spouse) who lived with the taxpayer all
year as a member of the taxpayer’s household if the relationship does not violate
local law

[Jesse]

Without looking.....

Could be a qualifying relative for a dependent exemption, however, must be a qualifying child (not relative) for HofH or EIC.

[Jesse]

I have a similar situation- I read if the mother has to file and is eligible to claim the child then no one else can. Is that correct?

Who lives with who?

If Boyfriend, Mom and children (Mom's children - not boyfriends) live together then the children would not be qualifying relatives of boyfriend because they are qualifying children of Mom - if Mom is required to file.

[Jesse]

Jen I think the mother can ALWAYS release the exemption to the Parent or to any adult who lived with the child all year. I could be wrong.

I believe only to the noncustodial parent - not to any adult - someone correct me if I'm wrong.

[erchess]

Yes Jesse

You are right and besides the child is a QC of her mother and therefore cannot be anyone's QR. I am guilty of being blinded by what I want...