Client and girlfriend live together all year. Baby is born. Girlfriend has a job and earns over $3000. She files tax return and claims baby as her exemption. Client has paid girlfriend's and baby's health insurance, all the girlfriend and baby's medical expenses. Client supports both baby and girlfriend, under the medical rules, can he deduct these medical expenses on Sch A?
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This question seemed straight forward, but is not, because she filed a return and claimed herself and her child. So she said she supported the child.Originally posted by JenMO View Post
See TTB 4-5
Also Sch A instructions say:
So, unless someone knows more about this, I'd say you'd have to amend her return in order to have him claim the medical expenses. He didn't just not claim her because she missed the requirements of being a dependent. He didn't claim her because she claimed herself and her child (said she supported herself and her child).Whose medical and dental expenses can you include? You can include medical and dental bills you paid for:
Yourself and your spouse.
All dependents you claim on your return.
Your child whom you do not claim as a dependent because of the rules for children of divorced or separated parents.
Any person you could have claimed as a dependent on your return except that person received $3,400 or more of gross income or filed a joint return.
Any person you could have claimed as a dependent except that you, or your spouse if filing jointly, can be claimed as a dependent on someone else's 2007 return.
Example.
You provided over half of your mother's support but cannot claim her as a dependent because she received wages of $3,400 in 2007. You can include on line 1 any medical and dental expenses you paid in 2007 for your mother.JG -
If girlfriend made over $3400, client can't claim and GF would have to file her own tax return, the client is supporting girlfriend- pays for home, insurance, etc. But baby doesn't make money, but sometimes I've seen that children are claimed by persons not making enough money to support them, but since they are their children they claim anyway. Does that make sense? Client had over $10,000 worth of medical expenses on GF and his child. Guess that happens when you don't get married? I'm just looking for a way for him to claim those expenses.Comment
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Even if girlfriend made more than $3,400 it still could make more sense for your client to claim child (I understand it is his, right?). Child credit plus exemption plus kids medical expenses plus bonus payment could outweigh EIC. I assume if your client was able to pay $10,000 he doesn't qualify for EIC.
By the way, I would be upset if I paid $10,000 and girlfriend didn't communicate with me about filing. But then, what do I know?Comment
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Remember the defination of a Qualifying Child
It may not make sense, but that's what the law says. Nothing in the uniform definition of a qualifying child says that the parent claiming the child as a dependent need support it at all.... but sometimes I've seen that children are claimed by persons not making enough money to support them, but since they are their children they claim anyway. Does that make sense?
Nope. See above.... because she filed a return and claimed herself and her child. So she said she supported the child.
As to the original question, if he is the father of the child he may claim it for dependency, EIC, HoH, child tax credit, child care credit, and deduct the medical expenses. If she also files and claims the child, the IRS will give it to him under the AGI tiebreaker rules.Comment
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There is a control issue here. Nevertheless, my 2006 tax finder book says "A divorced (or separated) parent can deduct medical expenses paid for the child (regardless of w hich parent claims the personal exemption) if the two parents together provide more than half of the child's support and the child is in the custody of one or both parents for more that half the year [IRC 213(d)(5). It also talks about paying medical expenses for any person living in the taxpayer's household all year and that taxpayer provided more than one-half the support for the year. Does this justify my taking all the medical expenses on Sch A?Comment
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I'm not sure §213(d)(5) will work. That section says that any child to whom §152(e) applies shall be treated as a dependent of both parents for purposes of this [medical deduction] section.Originally posted by JenMO View Post
But the question is - does §152(e) apply to this child? Your post leads me to believe that none of (i) or (ii) or (iii) apply???????????
§152(e)(1) ...
(A) a child receives over one-half of the child's support during the calendar year from the child's parents—
(i) who are divorced or legally separated under a decree of divorce or separate maintenance,
(ii) who are separated under a written separation agreement, or
(iii) who live apart at all times during the last 6 months of the calendar year, and—Comment
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Why didn't Dad take the child as a dependent? Surely the Head of Household status, dependency exemption and child tax credit would have added up. Or was Mom's income in a range to qualify for EIC in excess of these tax atributes that Dad gave up.
I do agree with NY EA in that I don't think you can apply the same rules for children of divorced, seperated or parents living apart rules.
For the girlfriend maybe? If she is a US citizen, lived in the same household all 12 months(and assuming it does not violate local law), is not a qualifying child of another taxpayer, and he provided more than ½ of her support it would appear the only test that is not met is the Gross Income test which, according to pub 502, you can also deduct medical expenses you paid for someone who would have qualified as your dependent except that the person didn't meet the gross income or joint return test.Comment
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Never Married usually get Divorced & Separated benefits
Parents who were "never married" (to each other) usually end up qualifying for whatever the law book says applies to "divorced or separated under decree of divorce or separate maintenance".Comment
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Mom does not have to provide support to claim child. (TTB 3-15)
I don't think the child falls under the Rules for Divorced or Separated Parents.
Child is the "QC of More Than One Person." (TTB 3-17)
See Pub 17, p. 138 for the less restrictive definition of dependent under the medical expense rules. The dependent need only be your QC/QR, and meet a citizenship/residency test. I think these rules may allow Dad to deduct the child's expenses, as the tests here are met.
And I agree he can deduct Mom's expenses. (TTB 4-5)Comment
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