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Who is entitled to claim daughter as dependent?

I found a similar case in the archives but the parties were able to work out an agreement. In the following case, two of the parties aren't even speaking.

19 year old Daughter of a single mom has an emergency wedding in June '14. Groom leaves his new Mom-in-law with 100% of her daughters upkeep and expenses, including housing, food, clothing, spending money, the wedding expenses and the weekend Bahamas honeymoon, as well as paying son-in-law's expenses for storing his personal belongings, his truck storage, etc. Son-in-law spends zero for any of this in spite of the fact he made more $$ in the following six months than Single Mom made the entire year. Then new Son-in Law returns in DEC '14, just in time for his baby's birth. Finally, groom contributes something. His medical insurance covered hospital expenses related to the birth. At that point, Single Mom picks up additional baby and Son-in-Law feeding and housing expenses for next two weeks, at which point Daughter, Son-in-Law, and new baby leave for a different state. And, at which time, single mom also contributes toward most of the moving expenses of all three.

Now it's tax filing time. Single mom would like claim her daughter as a dependent. But new Son in law intends to file a joint return and will not consider husband/wife separate returns, which would allow single mom to claim her daughter. (at least I think that's the only way Single Mom can claim daughter).

There is no love lost between Single Mom and Son-in-law. So working something out between them is out of the question. They're not even speaking to each other. And yes, daughter is stuck in the middle and has zero influence over new hubby.

I'm assuming that if both Single Mom and Son-in-Law file the way each would like, the IRS will step in with a decision. To me, as an innocent bystander, it appears that Single Mom definitely deserves to claim her daughter but the IRS won't allow that unless the Son-in law and daughter file separately, which they won't (daughter is willing but has no say so in the decision). So son-in-law wins again.

Have I got that right? And if not, what can single mom can do about it?

Thanks in advance for any advice or opinions.

Reply to
PortStG
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Son-in-law cannot force "married filing joint" status and if he files a joint return without wife's signature it's a criminal offense. Default filing status for a married couple is "married filing separate" except where they agree to file jointly. Granted there are tax incentives for joint filing, but no requirement.

Ira Smilovitz

Reply to
ira smilovitz

They are married. They both fail the test to file as Head of Household having spent at least one night together sometime after June 2014. Therefore they can file joint or they can file married separate. Assuming that the child lived with both of them for the same number of nights in Dec. 2014, either one can claim the child as a qualifying child on a separate return. If they both claim the child, the exemption will be awarded to the parent with the higher AGI.

Reply to
Alan
[...]

Agree, MFJ is an election that both spouses must agree to make.

And it's not what "Single Mom" can do about it, it's what daughter can do about it.

I don't have time or inclination to analyze all the gory details to be sure the 19-yr old can actually be claimed as a dependent, but here are at least two other items to be considered:

  • Who is going to claim the baby? That might end up being a much more valuable tax benefit than claiming daughter.

  • Is the married couple domiciled in a community property state (about

1/4th of the US population is, by my rough estimate)? If so, even when filing separately, income must be allocated by community rules, so daughter would almost certainly have too much income to be a Qualifying Relative (assuming she is not in college and therefore too old to be a Qualifying Child). (Note that domicile is not the same thing as residency, so fact hubby moved away for a while is probably irrelevant).

Professional advice should be sought.

Reply to
Mark Bole

Actually, it sounds like he can and does do anything he damn pleases and these two ladies go along with it.

Reply to
Pico Rico

-Big snip-

-snip again-

Thanks, that adds new information for me, but instead of saying "daughter has zero influence", I should have said "daughter is totally dominated". She is going to do whatever her hubby tells her to do. Including signing whatever hubby tells her to sign. And since they are in a different state, she is now even cut off from any of her mom's influence. Another reason I thought mom would come out on the short end is that daughter was 19 before year end. My understanding is that daughter not being under age 18 would prevent Mom from forcing the issue, even though mom appears to meet all the other tests to claim daughter. I may be wrong about that too though, which is why I'm asking.

Reply to
PortStG

Mom cannot clain daughter as a dependent if daughter files MFJ.

The joint return test would not be passed.

Reply to
Arthur Kamlet

Son-in-Law will claim the baby whether they file separately or MFJ. Seems to me Mom wants to claim only the daughter, if nothing else, as a matter of principle. Although she certainly needs all the financial help she can get.

No, it's not a community property state. And it has no state income tax.

More info: Daughter graduated high school May '14, and didn't attempt further education, lived with Single Mom Jan thru early Dec. Attended high school Jan thru May, then helped around the house until the baby born in early Dec, then moved out late Dec. Daughter had a little unearned income (estimate < $1000). Son in Law had twice as much earned income (+/-$50k) as Single Mom (+/-25k). I don't know how much of ^that^ is relevant but, there it is anyway.

Reply to
PortStG

I feel certain Son-in-Law would claim the child if they filed separately. He earned 100% of their combined earned income. She had only a small amount of unearned income.

Reply to
PortStG

Unfortunately, you have a good handle on the situation. Except Single Mom is finally realizing she has lost her daughter to a Jack#$$. And just as importantly, her granddaughter. So no more Mrs Nice mom... at least for now.

Reply to
PortStG

After reading this and all of the follow-up posts, I wonder how much the Mom or the Husband would each save on their taxes if they were able to file in the manner that they wanted -- meaning Mom claim daughter or Husband insisting on MFJ vs. married filing separately with husband claiming his/their child on his return.

The reason that I am curious is that, if the Mom claiming daughter as a dependent would save more than the husband would save by filing MFJ, maybe the Mom can make a "deal" with the self-centered selfish husband. Maybe Mom could tell the husband that she will save more and that she will pass on the savings to the happy couple if they agree to not file MFJ. Then, after everything is filed, stall and then "forget" to pass on those savings to the couple.

Reply to
Jake29

This would seem to be the most practical solution.

Single Mom is willing to split the savings. Problem now though is the communication between them.

I somehow don't think this part will help matters in long run LOL!

Reply to
PortStG

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