EIC Question

[mrjayride]

Hi

I have a quick question about the 2006 EIC.

I have two children with my boyfriend. He worked full time in 2006. I started working part time in the fall of 2006. My boyfriend is claiming our two children for the EIC.

My question is this: Can I file as 'single' with 'zero' dependants and take the EIC payment that I qualify for even though my boyfriend is taking the EIC for our two children? Since we are not married, do we have to file together or are we each entitled to the EIC (his being with the two children, mine being without) ?

[Grumpy]

Hi

I have a quick question about the 2006 EIC.

I have two children with my boyfriend. He worked full time in 2006. I started working part time in the fall of 2006. My boyfriend is claiming our two children for the EIC.

My question is this: Can I file as 'single' with 'zero' dependants and take the EIC payment that I qualify for even though my boyfriend is taking the EIC for our two children? Since we are not married, do we have to file together or are we each entitled to the EIC (his being with the two children, mine being without) ?

To answer the last question first: If you live in a state which recognizes common law marriages, AND you have met all of state's requirements for that designation, then you are in fact married. If you are married, then your only filing options are Married Filing Separately or Married Filing Jointly. If you choose Married Filing Separately, then NEITHER of you will be eligible for EIC.

If, under the laws of your state, you are each still single, and you are each the biological parents of the children, then you can choose which one takes the EIC, assuming that all other requirements are met. However, the remaining parent is not eligible to then take EIC as a person with no child, since he/she does in fact have a qualifying child, even though he/she is foregoing the EIC in favor of the other parent.

[Grumpy]

EIC Question

One other thing I should have mentioned. Assuming that you are not required to file as married, and that each of you are the biological parents, then you could decide that each of you would claim one of the children. I suggest you look carefully at this option in order to determine which way would be better. If you have not already done so, reading IRS Pub 596 might prove helpful. A downloadable copy may be found at: http://www.irs.gov/formspubs/index.html

[Brad Imsdahl]

My question is this: Can I file as 'single' with 'zero' dependants and take the EIC payment that I qualify for even though my boyfriend is taking the EIC for our two children? Since we are not married, do we have to file together or are we each entitled to the EIC (his being with the two children, mine being without) ?

Even if you could file as single with no children and take EIC with no children, allowing the father to claim the other two kids, there is no reason to want to do it this way.

If you look at the EIC tables, the EIC for no children at $5,000 is $384, for one child it is $1,709, and for two children it is $2,010. Simple math will tell you that you will reap the most EIC by each claiming one child ($1,709 + $1,709 = $3,418) vs. ($384 + $2,010 = $2,394).

I think if you plug in your actual earned income into this equation, you will always find that it is better for both of you to claim one child. The question of whether one can claim 2 kids for EIC while the other claims zero kids for EIC is moot.

[jainen]

haven't done the math

>>you will always find that it is better for both of you to claim one child<<

I haven't done the math, but it seems the extra exemption and child tax credit might affect the decision.

[ChEAr$]

And

it depends on the incomes of both.

AND it may depend on whether the boyfriend has custody. perhaps we assume that both parents
cohabitate, but not necessarily the case. If mother has the two kids and boyfriend lives elsewhere,
different result.

[Koss]

Common Law Marriage?

If you live in a state which recognizes common law marriages, AND you have met all of state's requirements for that designation, then you are in fact married.

In most states that recognize common law marriage, the marriage can only occur if the two parties consciously agree to enter into a marital relationship. This is difficult to establish. It can become a sort of chicken-egg question.

I am not suggesting that a written agreement is required. And no, I'm not an attorney, so this isn't a professional opinion. But in most states, a common law marriage will not exist unless both parties have a clear intent to enter into such a relationship. It is difficult to establish such intent unless both parties have somehow expressed their intent or acted on it in some way.

Filing a joint return could be interpreted as clear evidence of such intent. But there might be other ways to establish a common law marriage.

My real point is that in most states, some type of conscious intent and deliberate action is needed to create a common law marriage. And this intent and action can be difficult to identify if one or both partners are taking the position that they did not enter into a common law marriage.

Unlike a partnership agreement and many other types of contracts, I don't think a common law marriage can simply arise out of the behavior of the parties or the totality of the facts and circumstances.

A marriage performed by a judge or minister is void, and will be annulled, if it can be shown that one of the parties did not knowingly consent to the marriage.

You can't get married--by statutory law or by common law--without even being aware of it.

Burton M. Koss

[jainen]

I woke up this morning

>>You can't get married--by statutory law or by common law--without even being aware of it.<<

Whew, that's a relief! It so happens I've been worried about that very thing since I woke up this morning!

[Davc]

>>You can't get married--by statutory law or by common law--without even being aware of it.<<
Is that why what happens in Vegas stays in Vegas?