New Parent AGI Rule

travisr

travisr

Bluelighter
Joined
May 10, 2009
Messages
65
Ok, im an unmarried man. I have a girlfriend which I been with over 10 years, its like were married tho, anyways we have now 3 sons. We would wait all year for our tax returns, this is how we survive! Last year, I shoud say, every year we would file our taxes sepratly. I would claim 1 son and she would claim one. This went on for 7 years with no problem. Now this year I went to claim 2 of my sons, same as i did last year, and was told there is a new tax law about who can claim dependents. Basicly the IRS is screwing us by making a tax change that make the person inthe household,even tho were not married, who has the AGI ( Adjusted Gross Income) claim all the children. Anyone have any tax help with this change? I looked up soo much crap, and found this tie-breaker thingy but it would not appply in our case! arrggghhh
 
I meant to say the parrent who has the highest income would be the one to have to claim all the children. Im not understanding why tho, were not married and have been able to file seperatly every year...
 
that is weird, but if she wants to let you then whats their say in it

like a custodial parent has the right to claim the kids but they can defer it to the non custodial with a form
 
travisr said:
I meant to say the parrent who has the highest income would be the one to have to claim all the children. Im not understanding why tho, were not married and have been able to file seperatly every year...
Click to expand...

It is because in the case of unmarried/never-married parents, the qualifying child(ren) can only be claimed as the dependent of one. In a situation where two unmarried persons are parents of the child, the "tie-breaker" rule applies in that the parent with the higher adjusted gross income (AGI) is entitled to the exemption.

I'm sorry if that's not the answer you wanted. If your girlfriend has the higher AGI, then the tie-breaker rule is very clear that she is entitled to claim the exemption. Two people who do not file as married persons filing jointly cannot both claim the children, even if the support/living tests are met. The taxpayer who brings in more income to the household is entitled to the exemption under existing IRS regulations.

Now, if the two of you share expenses relating to the children, as I assume you do, then the two of you can surely come to some sort of agreement between yourselves as to how the money you'd be getting back (or your tax liability) is to be spent. That is a private matter, though; your tax preparer is not the one to mediate that dispute, if any.

fatallyflawed - it's different in the case of divorced or separated parents. The non-custodial parent can sign a release agreeing not to claim the child(ren) for either that tax year or successive tax years.
 
Mariposa said:
fatallyflawed - it's different in the case of divorced or separated parents. The non-custodial parent can sign a release agreeing not to claim the child(ren) for either that tax year or successive tax years.
Click to expand...

yeah i caught it after i posted but i think you meant custodial ;)
 
^Not necessarily. There are cases where the non-custodial parent pays more toward the child's upbringing and care than the custodial parent does. It is a one-page IRS form (8832)

(I obviously do not represent the OP or anyone on Bluelight, but I went to school for tax preparation and hopefully I gave a complete enough answer to the OP's question.)
 
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