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Dear Tax Talk,
My husband got a letter from the IRS. We just got married this year, and for the past six years we lived
together with my children. At times I did not even work; he has been the main provider for our family so he
claims my kids on his taxes every year. We got a letter from the IRS wanting proof of dependents. Now, come
to find out, the rules have changed and he was not allowed to claim them, I guess. I am so scared; what do we do?
-- Mandy
Dear Mandy,
Don't be scared, and don't guess that you did something wrong just because the IRS is making an inquiry.
Although some of the definitions relating to dependents were modified and clarified in 2005, the basic allowance
has not changed over the years.
In order for a boyfriend to claim
your children as his dependents, they have to
have lived in his home for the entire year. In
addition, the IRS cannot go back more than three
years on his taxes unless there is some other
overriding reason, such as late filing or fraud.
Because you've been living with him for more than six years, and the statutes of limitation preclude
going back to the first year you lived together, he should be able to meet the rule relating to the children living
the entire year in the same household.
Apart from the entire year rule, your now-husband and the dependents have to meet the other customary
rules for claiming the children as his dependents. For example, the children have to be citizens or residents of
the U.S., he has to provide more than half of their support and, depending on the age of the child, the child's
income has to be below the applicable level for that year.
In addition, if you have had little or no income over the years, (generally less than $3,200) your
boyfriend can claim you as his dependent, prior to your marriage. I suggest you go back and look at what the IRS is
requesting, and determine if you have to spend the money for an accountant to represent you. In the end, the accountant
can be cheaper than owing the IRS a fortune for a misunderstanding.
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