Can I claim my girlfriend as a dependent if we live together?

This is a common question for unmarried couples who live together and share expenses. There are specific IRS rules that determine whether you can claim your girlfriend as a dependent for tax purposes. Here is a breakdown of the requirements and things to consider.

Overview of Claiming a Dependent

In order to claim someone as your dependent, they must meet certain criteria set forth by the IRS. Here are the basic requirements:

• The person cannot be your qualifying child or qualifying relative.
• The dependent must be a U.S. citizen, U.S. resident alien, U.S. national, or resident of Canada or Mexico.
• You must provide over half of the person’s total support for the year.
• The person’s gross income for the year must be less than $4,300.
• You cannot claim a married person as a dependent if they file a joint return with their spouse.

In addition, you must meet certain requirements as the person claiming the dependent:

• You cannot be the dependent of another taxpayer.
• Your adjusted gross income must be above a certain threshold to claim the full exemption amount.

So in order to claim your girlfriend as a dependent, she would need to meet the dependent criteria outlined above. Some key considerations are that she cannot be your qualifying child or relative, she must live with you for more than half the year, and she must not make over the gross income threshold.

Does My Girlfriend Qualify Based on Our Living Situation?

Whether or not you can actually claim your girlfriend as a dependent will depend on your specific living situation and relationship. Here are some things to take into account:

• How long you’ve lived together – In order to claim your girlfriend as a dependent, you must have lived together for the full tax year. If you just moved in together partway through the year, she would not qualify.
• Whose name is on the lease – Typically, the person who is named on the lease and paying rent is considered the head of household. So if your girlfriend’s name is not on the lease, it can help prove you provide the majority of her support.
• Who pays which bills – To determine if you provide more than half of your girlfriend’s support, look at how expenses are split. Include rent, utilities, groceries, transportation, medical bills, etc. Document this in case you are audited.
• Shared bank accounts – Having joint bank accounts and shared expenses can demonstrate you support each other. But make sure your girlfriend’s income sources are not deposited into these joint accounts.
• Your girlfriend’s independent income – If your girlfriend earns her own income from sources like a job, investments, benefits, gifts, etc., you’ll need to determine if it exceeds the $4,300 gross income threshold to qualify her as your dependent.

So look closely at your financial situation, living arrangements, and how expenses are divided to determine if your girlfriend truly depends on you for support. Just living together does not automatically make her your dependent.

Tax Benefits of Claiming Your Girlfriend

If your girlfriend does qualify as your dependent, there are a few potential tax benefits:

• You can claim the dependent exemption for her, reducing your taxable income if you qualify based on your filing status and income.
• If you itemize deductions, you may be able to deduct medical expenses you paid for your dependent girlfriend.
• If you contribute to a health savings account (HSA), you may qualify to contribute more with a dependent. HSAs have triple tax benefits.
• Some tax credits like the child tax credit have higher income phaseouts when you claim a dependent. This can help you qualify for more credit amounts.

So claiming your girlfriend can directly reduce your tax bill through exemptions and deductions. It can also help indirectly increase other tax credits and benefits you may qualify for.

Steps to Claim Your Girlfriend as a Dependent

If you determine your girlfriend meets all the IRS requirements, here are the steps to claim her as a dependent:

1. Make sure your girlfriend agrees to let you claim her. Have her review the qualifications also to ensure accuracy.
2. Document that you provide more than half of her support with evidence like bills, bank statements, your lease agreement, etc.
3. Have your girlfriend disclose any gross income she earned during the year to confirm it’s under the income threshold.
4. Fill out IRS Form 1040 and include your girlfriend’s name and Social Security Number on Schedule EIC if claiming Earned Income Credit.
5. Check the box next to your girlfriend’s name on Form 1040 signifying she is your dependent for tax purposes.
6. File your tax return by the filing deadline, usually April 15. Be prepared to provide your documentation if audited.

Following these steps helps avoid delays processing your return or questions down the road about your girlfriend’s dependent status.

Potential Problems With Claiming an Unmarried Partner

While claiming your unmarried partner as a dependent can provide tax benefits, it does come with some potential drawbacks to consider:

• An audit could put your living and financial situation under scrutiny.
• If your girlfriend has debt, you could become responsible for paying it by claiming her as a dependent.
• You lose the dependent exemption if you marry your girlfriend during the tax year.
• It can cause issues if you have an acrimonious breakup and your ex wants to claim herself.
• Your girlfriend loses eligibility for some tax credits and deductions if claimed as a dependent.

So make sure you weigh the pros and cons carefully before claiming your unmarried partner. Understand how it impacts both of your financial situations beyond just the tax benefits.

What Happens If You Break Up?

If you claim your girlfriend as a dependent but break up partway through the tax year, what happens can get complicated. Here are a few key things to know:

• You can only claim your girlfriend as a dependent for the months you lived together. Notify the IRS if your breakup changes her dependent status.
• If she moves out but you still provide over half her support, you may still be able to claim her for the full year if you meet the other tests.
• If she begins supporting herself, you should amend your return to remove the dependent claim and avoid penalties for an improper claim.
• If she earned income while living with you that you didn’t report, file an amended return to correct this also.
• If you claimed certain credits like the EIC based on having a dependent, repay any excess amounts if she no longer qualifies.

So a breakup can definitely complicate your tax return. Make adjustments where necessary and let the IRS know if your girlfriend’s dependent status changes to avoid issues down the road.

Conclusion

Claiming your girlfriend as a dependent can provide nice tax breaks. But she must meet all the IRS qualifications, with particular attention paid to your living situation and financial support provided. Weigh the pros and cons carefully, and be sure to adjust your return if anything changes during the tax year. Consulting a tax professional can also help ensure you claim your girlfriend properly and maximize any benefits available. With the right documentation and understanding of the requirements, you may be able to reduce your taxable income and qualify for credits that lower your tax bill.