Originally posted by: krayzie
I have lived with my fiancee and her two children for 2 years now. I provide more than half the support for her and her children. One of the children is disabled and is on SSI. My question is whether or not I can claim head of household and also claim my fiancee and her disabled child.
I was reading this. and it seems that I should be able to at least claim her as she had a gross income less than $3,400 last year as she was going to school. I know that for the taxes last year, I did not claim anyone as the check list did not seem to allow me to claim them. This year it seems like I can claim her and perhaps I can claim her disabled child. Does the disabled childs SSI count towards the $3,400 maximum gross income?
On another note my fiancee's ex husband is only allowed to claim the other child, this was decided by the courts. He has only paid about $200 worth of child support in 2007 and I was wondering if this would allow me to claim both children since he is not paying more than half the support. If so what would happen if he and I both claim the same child? From what I read, it seems that he automatically wins since he is the father of the child. I also read though that you must pay for more than half the childs support to claim them.
Thanks for any help!
Originally posted by: EagleKeeper
Your questions are answered in the OP
Originally posted by: krayzie
Originally posted by: EagleKeeper
Your questions are answered in the OP
The OP says that significant others can not be claimed as a dependent. This makes me even more confused as the IRS site rules don't seem to disqualify her and many sites say that you can claim your SO as a dependent. Is there a reason that you can't claim your SO? IE the kiplinger link in my first post gives an example about claiming a girl friend and her child as a dependent. Thanks.
Originally posted by: krayzie
Originally posted by: EagleKeeper
Your questions are answered in the OP
The OP says that significant others can not be claimed as a dependent. This makes me even more confused as the IRS site rules don't seem to disqualify her and many sites say that you can claim your SO as a dependent. Is there a reason that you can't claim your SO? IE the kiplinger link in my first post gives an example about claiming a girl friend and her child as a dependent. Thanks.
Q. My girlfriend and I live together. She doesn't have a job, so I pay the rent and all the groceries. Can I claim her as my dependent?
A. Perhaps, if she passes the tests for a qualifying relative. That means you must have lived together all year long, her gross income must be less than $3,400 and you must have provided more than half of her support. One other test: your living arrangements must not violate local law. Six states (Mississippi, Virginia, West Virginia, Florida, North Dakota and Michigan), for example, have rarely-enforced laws prohibiting cohabitation, and the IRS notes that some states prohibit couples from living together if one party is married to someone else. In such a case, the IRS says, a dependency exemption would be disallowed even if the other tests are met.
Originally posted by: murphy55d
question about local taxes.... we moved last march, and moved into a different tax 'area' (for lack of a better word on my part), and we only received local tax forms for the locality we moved FROM. first, how do i determine how much i owe THAT locality, and then how do i determine how much i need to pay for where we live NOW? we moved into our house march 26th. i know where to get the form for our new area but how do i determine what part of my income gets taxed for the first area, then the second? is it simple enough as looking at what i made YTD on my check stubs dating to mar 26? then using that amount for area 1, then the remaining for area 2? i dont know if i have that information for my wife...
Member of Household or Relationship Test
To meet this test, a person must either:
1.
Live with you all year as a member of your household, or
2.
Be related to you in one of the ways listed under Relatives who do not have to live with you.
Originally posted by: Ns1
EK-
Why wouldn't an SO be qualified as a dependent, IF they meet all of the requirements? Qualifying relative states
5. Relative OR
6. Taxpayer lives with (you) for entire year
Member of Household or Relationship Test
To meet this test, a person must either:
1.
Live with you all year as a member of your household, or
2.
Be related to you in one of the ways listed under Relatives who do not have to live with you.
http://www.irs.gov/publication....html#publink100032236
Originally posted by: EagleKeeper
Originally posted by: Ns1
EK-
Why wouldn't an SO be qualified as a dependent, IF they meet all of the requirements? Qualifying relative states
5. Relative OR
6. Taxpayer lives with (you) for entire year
Member of Household or Relationship Test
To meet this test, a person must either:
1.
Live with you all year as a member of your household, or
2.
Be related to you in one of the ways listed under Relatives who do not have to live with you.
http://www.irs.gov/publication....html#publink100032236
The overall paragraph is related to Relatives.
They are either a relative by blood or marriage.
Once that is determined, then they must meet one of the two conditions that you listed.
A SO is not related by marriage and hopefully not by blood (although in some areas...)
Since that test fails, any subsequent tests should not come into play.
Section 152: Dependent Defined
(d) Qualifying Relative.--For purposes of this section--
(1) In general.--The term `qualifying relative' means,
with respect to any taxpayer for any taxable year, an
individual--
(A) who bears a relationship to the taxpayer
described in paragraph (2),
(B) whose gross income for the calendar year in
which such taxable year begins is less than the
exemption amount (as defined in section 151(d)),
(C) with respect to whom the taxpayer provides
over one-half of the individual's support for the
calendar year in which such taxable year begins, and
(D) who is not a qualifying child of such taxpayer
or of any other taxpayer for any taxable year beginning
in the calendar year in which such taxable year begins.
(2) Relationship.--For purposes of paragraph (1)(A), an
individual bears a relationship to the taxpayer described in
this paragraph if the individual is any of the following with
respect to the taxpayer:
(A) A child or a descendant of a child.
(B) A brother, sister, stepbrother, or stepsister.
(C) The father or mother, or an ancestor of either.
(D) A stepfather or stepmother.
(E) A son or daughter of a brother or sister of
the taxpayer.
(F) A brother or sister of the father or mother of
the taxpayer.
(G) A son-in-law, daughter-in-law, father-in-law,
mother-in-law, brother-in-law, or sister-in-law.
(H) An individual (other than an individual who at
any time during the taxable year was the spouse,
determined without regard to section 7703, of the
taxpayer) who, for the taxable year of the taxpayer, has
the same principal place of abode as the taxpayer and is
a member of the taxpayer's household.
Originally posted by: erwin1978
TD Ameritrade automatically moves my idle funds to a money market. I also have an ING account that pays interest. What do I need to fill out? Are these also capital gains and should go on Schedule C?
Originally posted by: erwin1978
According to ING I get a 1099 if I earned more than $10 in interest for 2007. I did. Is that the law? I received less than $10 with TD Ameritrade. Does this mean I don't have to report the TD Ameritrade interest?
Originally posted by: Trevelyan
Hello Tax Experts,
I have two questions for you:
1) Mileage for Small Business
I own a small business that does web design. I log my miles when I drive to meet a client. Let's say I make a trip like this:
Home -> Client's House -> School -> Return Home
How would I handle the mileage? Which miles can I write off for business purposes? I drove all the way to the client's house, and then went to school (so that's personal), and then returned home.
2) Business Income
Occasionally I will do tech support for friends or family. Sometimes I charge them, and sometimes they just give me some money for my trouble. I have always counted this as business income, even though my business is web design and not really computer tech work. Do I have to count this as business income legally?
Thank you for your expertise!
Trevor
Originally posted by: krayzie
I found this at the IRS site you linked me EagleKeeper. It looks like I can claim my SO but I can not claim head of household.
Example 3?girlfriend.
Your girlfriend lived with you all year. Even though she may be your qualifying relative if the gross income and support tests (explained later) are met, she is not your qualifying person for head of household purposes. See Table 4.
Example 4?girlfriend's child.
The facts are the same as in Example 3 except your girlfriend's 10-year-old son also lived with you all year. He is not your qualifying child and, because he is your girlfriend's qualifying child, he is not your qualifying relative (see Not a Qualifying Child Test, later). As a result, he is not your qualifying person for head of household purposes.
I'm still not 100% sure if I can claim her children as qualifying relatives since my SO does not have to file taxes. If they're her qualifying children and she does not need to file taxes are they then allowed to be my qualifying relative?
Originally posted by: Ns1
Originally posted by: EagleKeeper
Originally posted by: Ns1
EK-
Why wouldn't an SO be qualified as a dependent, IF they meet all of the requirements? Qualifying relative states
5. Relative OR
6. Taxpayer lives with (you) for entire year
Member of Household or Relationship Test
To meet this test, a person must either:
1.
Live with you all year as a member of your household, or
2.
Be related to you in one of the ways listed under Relatives who do not have to live with you.
http://www.irs.gov/publication....html#publink100032236
The overall paragraph is related to Relatives.
They are either a relative by blood or marriage.
Once that is determined, then they must meet one of the two conditions that you listed.
A SO is not related by marriage and hopefully not by blood (although in some areas...)
Since that test fails, any subsequent tests should not come into play.
Sorry EK, I hate to shit on your thread but I gotta respectfully disagree.
Going to RIA Federal Tax Handbook, they also state:
"The following relationships of an individual to the taxpayer meet the relationship test: a child or descendant of a child including foster and adopted children, [a brother, sister, so on and so forth]....and an individual...who, for the tax year of the taxpayer, has as such individual's principal place of abode the home of the taxpayer and is a member of the taxpayer's household (sec 152(d)(2)"
Section 152: Dependent Defined
(d) Qualifying Relative.--For purposes of this section--
(1) In general.--The term `qualifying relative' means,
with respect to any taxpayer for any taxable year, an
individual--
(A) who bears a relationship to the taxpayer
described in paragraph (2),
(B) whose gross income for the calendar year in
which such taxable year begins is less than the
exemption amount (as defined in section 151(d)),
(C) with respect to whom the taxpayer provides
over one-half of the individual's support for the
calendar year in which such taxable year begins, and
(D) who is not a qualifying child of such taxpayer
or of any other taxpayer for any taxable year beginning
in the calendar year in which such taxable year begins.
(2) Relationship.--For purposes of paragraph (1)(A), an
individual bears a relationship to the taxpayer described in
this paragraph if the individual is any of the following with
respect to the taxpayer:
(A) A child or a descendant of a child.
(B) A brother, sister, stepbrother, or stepsister.
(C) The father or mother, or an ancestor of either.
(D) A stepfather or stepmother.
(E) A son or daughter of a brother or sister of
the taxpayer.
(F) A brother or sister of the father or mother of
the taxpayer.
(G) A son-in-law, daughter-in-law, father-in-law,
mother-in-law, brother-in-law, or sister-in-law.
(H) An individual (other than an individual who at
any time during the taxable year was the spouse,
determined without regard to section 7703, of the
taxpayer) who, for the taxable year of the taxpayer, has
the same principal place of abode as the taxpayer and is
a member of the taxpayer's household.
Text
pg 201 para 2
Originally posted by: erwin1978
One of my stock did a forward split and paid cash dividends. Do I note that down on Schedule D or somewhere?
Also, do these free efile websites allow you to submit Schedule D online as well or do I need to mail it in separately?
Also, since my only income for 2007 was from trading stocks do I need to file for state and local taxes?
You should file if you have the income - or else your grandparents are required to declare that income.Originally posted by: heymrdj
OK I'm trying to figure out if me and my brother have to file.
1. I do not work, any work is simple in cash repairs of neighborhood computers, 20$ here, 10$ there, doesn't amount to more than 200$ a year.
2. I get Veteran's Assistance Chapter 35 benefits because my mother is deceased and was in the Navy. This is educational assistance.
3. I have HOPE Scholarship
4. I have a CD with my bank that has it's interest put back into the CD every six months.
5. I have a Money Tree investment that compounds the interest daily.
6. I have of course purchased books for college, and a laptop.
7. I also have some Social Security (part of the military thing) from January till May (at may, my 18th birthday, my income switched from Social Security to non-taxable Chapter 35 for college)
Based off this do i need to file taxes this year for the first time? I saw my bank sent the interest of my CD in a form to us for the government. Is this my red flag i must file?
EDIT: Also, i am marked as dependent by my grandparents (whom i've lived with since 2 years old). I couldn't understand the first post in this thread, do they need to file something about HOPE?