Common Law Spouse

[Kong]

In 2002, Arizona abolished cohabitation as a crime. If b/f or g/f lived together all year long,
could I prepare return as married filing joint? They have lived together for over three years. Arizona now recognizes common law arrangments, since it abolished cohabitation as a crime. If either individual has any children then, those also become children of the other, correct? Would a written contract be needed between these two individuals, acknowledging thier relationship? Pleas Advise

[jainen]

common law marriage

They can not form a common law marriage by living together in Arizona. If they were to get married, the spouse's children would be step-children unless they were adopted by the new partner. (In most cases, tax law treats step-children the same as natural children.) A contract might be a good idea if their relationship has legal issues.

[RLymanC]

Co-Hab

Check with Arizona law, they may have to file papers and delclare their desire to be married. If that is the case they would both be single for tax year 2005.

If both earned money each could claim their own child for ALL allowable credits.

When you talk about children, you didn't specify whos children they are. This gets sort of involved.

1- Boy earns money, girl none. Boy claims girl, can't claim her children.
2- Girl earnes money, boy none. Girl claims boy, can't claim his children.
3- If each has a child and boy and girl earn over $3,200, they file their own taxes and claim their own child on there tax return.

If either the boy or the girl earns less than $3,200 and they lived togeather all year the one that earned less than $3,200 qualifies as a dependent of the other, and each could file a tax return claiming their own children for the EIC credit.

If they wish to, and it is recogonized as a legal marraige in 2005, they file joint, and all children under the age of 19 can be claimed as a dependent if they did not provide over 50% of their own support. If over 19 and under 24 and a full time student the same applies.

If over 19 and not a student and earn over $3,200 you loss them as dependent.

The scenario goes on and on,