Tax confusion: Head of household vs claiming GF as tax dependent

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MonkeyPants
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Tax confusion: Head of household vs claiming GF as tax dependent

Post by MonkeyPants » Sun Sep 02, 2018 7:24 pm

Hi there,

I currently support my GF/partner as she starts her own business. I came across some information that suggests in our case she could be considered a "Qualifying Relative" in the eyes of the IRS (we are NOT related, but meet the criteria linked) and I can claim her as my tax dependent for a deduction of $4150. This seems fairly straight forward although there is some conflicting information on this.

https://turbotax.intuit.com/tax-tips/fa ... /L12RRXt6j

Running under the premise that this information is correct, I am confused about the following as I have never been in this position:
Can I also file as "head of household" rather than "single" to increase my standard deduction from $12K to $18?

This is the area where there seems to be most conflicting responses. Any insight would be appreciated.

Thank you!

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whodidntante
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Re: Tax confusion: Head of household vs claiming GF as tax dependent

Post by whodidntante » Sun Sep 02, 2018 7:32 pm

None of that sounds right to me, but I guess you can try if you determine you are eligible for that filling status. Just be prepared to defend your position to the IRS if questioned, which is something we should all be prepared to do.

Kevin8696
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Re: Tax confusion: Head of household vs claiming GF as tax dependent

Post by Kevin8696 » Sun Sep 02, 2018 7:48 pm

Check-out the following from the IRS:

https://apps.irs.gov/app/vita/content/g ... n_4012.pdf

Looks like "companion" is a Qualifying Relative, but is not a Qualifying Person.

You are correct that the Standard Deduction under the new tax law is $18,000 for head of household.... if you have a Qualifying Person.

Btw, the $4150 personal exemption was eliminated in the 2018 tax reform law.

Hope this helps you get started on determining status.
Last edited by Kevin8696 on Sun Sep 02, 2018 9:52 pm, edited 1 time in total.

123
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Re: Tax confusion: Head of household vs claiming GF as tax dependent

Post by 123 » Sun Sep 02, 2018 7:58 pm

Kevin8696 wrote:
Sun Sep 02, 2018 7:48 pm
Check-out the following from the IRS:

https://apps.irs.gov/app/vita/content/g ... n_4012.pdf

Looks like "companion" is a Qualifying Relative, but is not a Qualifying Person.

You are correct that the Standard Deduction under the new tax law is $18,000 for head of household.... if you have a Qualifying Person.

Btw, the $4150 personal exemption was eliminated in the 2018 tax reform law.

Hope this helps you get started on determining status.
It would seem that a girl friend would fit within the description of "friend or companion" and accordingly would not be a qualifying person.
The closest helping hand is at the end of your own arm.

jebmke
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Re: Tax confusion: Head of household vs claiming GF as tax dependent

Post by jebmke » Sun Sep 02, 2018 8:04 pm

The dependent for head of household has to be related. For an exemption, it doesn't. Of course the exemptions are gone now so this only applies if you are still filing a year prior to 2018.
When you discover that you are riding a dead horse, the best strategy is to dismount.

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tfb
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Re: Tax confusion: Head of household vs claiming GF as tax dependent

Post by tfb » Sun Sep 02, 2018 8:40 pm

Kevin8696 wrote:
Sun Sep 02, 2018 7:48 pm
Btw, the $4150 personal exemption was eliminated in the 2018 tax reform law.
But it's replaced with a $500 credit.
Harry Sit, taking a break from the forums.

MonkeyPants
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Joined: Sat Apr 28, 2018 2:07 am

Re: Tax confusion: Head of household vs claiming GF as tax dependent

Post by MonkeyPants » Sun Sep 02, 2018 8:48 pm

Ah, it was false hope then, it seems. Thanks everyone for taking the time to clarify for me!

RudyS
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Re: Tax confusion: Head of household vs claiming GF as tax dependent

Post by RudyS » Sun Sep 02, 2018 9:11 pm

We in this forum are always happy to help, but there is a DIY solution too. These types of questions can be answered by referring to IRS Publication 17 (irs.gov) which has details to determine status. This publication is a great go-to source for most questions. It will refer you to more detailed other publications if needed. Right now, it still covers only 2017 returns.

MonkeyPants
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Re: Tax confusion: Head of household vs claiming GF as tax dependent

Post by MonkeyPants » Sun Sep 02, 2018 9:58 pm

Well understood, thank you RudyS :happy

clydewolf
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Re: Tax confusion: Head of household vs claiming GF as tax dependent

Post by clydewolf » Mon Sep 03, 2018 9:21 am

You have about four months to get married. Then file as MFJ!

MonkeyPants
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Re: Tax confusion: Head of household vs claiming GF as tax dependent

Post by MonkeyPants » Mon Sep 03, 2018 2:04 pm

clydewolf wrote:
Mon Sep 03, 2018 9:21 am
You have about four months to get married. Then file as MFJ!
Anything is possible I suppose! :sharebeer

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