Hey, I need help! I had a baby this year but my fiancé wants to be the one claiming her on taxes. When turbo tax asks if I had a baby this year do I still put yes?

[collegeboundgal]

He is the biological father of both my children. My older child has been claimed by me every year so he wants to claim the baby. (She is 5 months old)

[DoninGA]

Do you both live in the same household as the child since the birth of the child?

If so, have you or the father provided over one-half of the child's support?

[rjs]

When TurboTax asks if you had a baby this year, the answer doesn't go on your tax return. TurboTax is just trying to tailor its questions to your particular situation.

How you answer the questions, and how you handle the baby on your tax return, depends on your living situation. Do you, your fiancé, and the children all live together? If so, and your fiancé is going to claim the baby as a dependent, just leave the baby out of your own tax return altogether. In that case you can tell TurboTax that you did not have a baby, so it won't ask you any more questions about the baby.

If you and your fiancé do not live together, then how you handle the baby on your tax return depends on which of you is the custodial parent. The custodial parent of the baby is the one that the baby lived with for more than half the time that she was alive during the year. Which one of you is the custodial parent?

[collegeboundgal]

Yes we both live in the same home and have for a few years. We try to split costs down the middle so it’s mostly 50/50 on that. 

[collegeboundgal]

Thank you, yes we do live together and have for a while now. Thank you for this information. It helps a lot

[rjs · Accepted solution]

Since you all live in the same home, either one of you can claim the baby as a dependent. You can decide between you who claims her, as long as you both agree. It doesn't matter who supports the baby, as long as she doesn't provide more than half of her own support. The one who is not claiming the baby does not enter any information about the baby on his or her tax return.

Who pays more than half the cost of keeping up the household determines which one of you can file as head of household. The other has to file as single (assuming that neither of you is legally married to someone else). The one who files as head of household has to claim one child as a dependent, but it doesn't matter whether it's the baby or the older child.

[Mike9241]

sorry but the tax rules say that under the conditions you presented only one of you is legally entitled to claim both kids and that's the one with the highest adjusted gross income.  This has a substantial economic effect because the one that can claim them gets HOH status while the one that can claim no dependents must file as single.

the way you want to do it is that both of you would be able to file as HOH with a qualifying dependent but that's not according to the tax laws and if caught there would likely be substantial additional taxes, penalties, and interest.   The wrong person claiming a dependent and thus getting tax credits they're not entitled to could be barred from claiming certain credits in the future that can range from 2 to 10 years. 

IRC 152(c)(4)

(4)Special rule relating to 2 or more who can claim the same qualifying child
(A)In general
Except as provided in subparagraphs (B) and (C), if (but for this paragraph) an individual may be claimed as a qualifying child by 2 or more taxpayers for a taxable year beginning in the same calendar year, such individual shall be treated as the qualifying child of the taxpayer who is—
(i)a parent of the individual, or
(ii)if clause (i) does not apply, the taxpayer with the highest adjusted gross income for such taxable year.
(B)More than 1 parent claiming qualifying child
If the parents claiming any qualifying child do not file a joint return together, such child shall be treated as the qualifying child of—
(i)the parent with whom the child resided for the longest period of time during the taxable year, or
(ii)if the child resides with both parents for the same amount of time during such taxable year, the parent with the highest adjusted gross income.

[Mike9241]

I understand your point, but IRS pubs have no standing in court. A couple relied on an IRS pub that had an error.  They lost in tax court. The court saying the pubs have no official standing. in the tax laws.  Thus I think the next step for the pair is to talk to a tax pro. others want to give their perspective.