IRS Reporting on Dependent Claims

[GNock_2024]

My roommate, a friend of 10+ years, and her child, my goddaughter (legally, on paper, and as noted in official police records), qualify as dependents on my tax return based on the IRS guidelines for who/what is a dependent. I'm covering 100% of their financial expenses, and they've lived with me for more than half the year.

After a heated argument, my roommate threatened to report me to the IRS if I tried to claim her and my goddaughter as dependents on my 2024 tax return. She said I "can't claim them without her permission" and that it's a crime. The thing is, she's already provided me with both of their SSNs, meaning I have all the information I need to claim both of them.

Is this true? If I claim them, is it considered a crime simply because she suddenly decided that she wouldn't let me do it? What would happen if my roommate attempted to report me to the IRS for claiming her and her daughter as dependents on my future tax return?

[Bsch4477]

They must have lived with you all year and had less than $4,700 in income for you to be able to claim them. A god daughter is not a recognized relationship by the IRS. 

[VolvoGirl]

They had to live with you ALL year.  Who can I claim as a dependent?

https://ttlc.intuit.com/community/credits-and-deductions/help/who-can-i-claim-as-my-dependent/00/267...

Who you can claim article

https://turbotax.intuit.com/tax-tips/family/rules-for-claiming-a-dependent-on-your-tax-return/L8LODb...

Can I claim a relative or friend?

https://ttlc.intuit.com/questions/1894472-can-i-claim-my-relative-or-friend-as-my-dependent

[GNock_2024]

But according to the IRS website, someone qualifies as a dependent if they live with you for "more than half the year". The IRS website does not specify that it must be one full year. https://www.irs.gov/credits-deductions/individuals/dependents

[xmasbaby0 · Accepted solution]

You cannot claim them as dependents if they lived with you for "half the year."   You do not need permission to claim a dependent that you can actually legitimately claim.  But your roommate/friend and her child are not related to you.   Unless they lived with you for the entire year, and your friend had less than $4700 of income, she cannot be claimed as your dependent, nor can you claim her child as your dependent.

Not sure what information you saw that led you to believe you could claim them, but you cannot.    And if you claim them when you should not, you would face repayment of any tax credits you received for claiming them as well as penalties.   If you are paying for 100% of their support and do not want to continue doing so, then perhaps they need different living arrangements.

IRS interview to help determine who can be claimed:

https://www.irs.gov/help/ita/who-can-i-claim-as-a-dependent

WHO CAN I CLAIM AS A DEPENDENT?

You can claim a child, relative, friend, or fiancé (etc.) as a dependent on your 2023 taxes as long as they meet the following requirements:

Qualifying child

• They're related to you.
• They aren't claimed as a dependent by someone else.
• They're a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
• They aren’t filing a joint return with their spouse.
• They're under the age of 19 (or 24 for full-time students).
• No age limit for permanently and totally disabled children.
• They lived with you for more than half the year (exceptions apply).
• They didn't provide more than half of their own support for the year.

Qualifying relative

• They don't have to be related to you (despite the name).
• They aren't claimed as a dependent by someone else.
• They're a U.S. citizen, resident alien, national, or a Canadian or Mexican resident.
• They aren’t filing a joint return with their spouse.
• They lived with you the entire year (exceptions apply).
• They made less than $4,700 in 2023.
• You provided more than half of their financial support.

When you add someone as a dependent, we'll ask a series of questions to make sure you can claim them. There may be other tax benefits you can get when you claim a dependent.

Related Information:

• What does "financially support another person" mean?
• What is a "qualifying person" for Head of Household?

[xmasbaby0]

You are looking at the wrong section of the information.   Someone who is NOT related to you must live with you for the entire year, not just "more than half" the year.   Sorry---you are mistaken and need to let go of the notion that you can claim your friend or her child who lived with you for part of the year.

[GNock_2024]

She's been living with me since September of 2023, and will be moving out at the end of August 2024. Does that qualify as a full year? Or does it need to be the full year of January 2024 to December 2024? (I just want to clarify what counts and what doesn't since I'm not a tax expert and don't want to stir up trouble for myself.)

[VolvoGirl]

@GNock_2024   That IRS link is half year for a qualifying child (your own child).  Look down under the next section Qualifying Relative, second point Member of Household.....
Lives with you all year as a member of your household or is a specific type of relative

[xmasbaby0]

No.   In order for you to claim either of them as a dependent  they would have to live with you from January 1 through December 31.   Moving out in August 2024 is a deal breaker--even if your friend had the low amount of income in 2024 that might allow you to claim her or the child.

[VolvoGirl]

Sorry its a full calendar year Jan-Dec.

[GNock_2024]

Okay. Thank you for clarifying.

For the record, her income is a whopping zero dollars. She's unemployed.

[rjs]

Her income makes no difference. For you to claim her as a dependent she has to meet all the requirements, and she doesn't meet the requirement that she lived with you for the entire calendar year.

Being unemployed does not necessarily mean that a person has no income. There are other kinds of income besides income from working. As one possible example, if she collects unemployment benefits, that's income.

[GNock_2024]

She receives food stamps each month, and that's it. So unless food stamps count as "income, " her income is non-existent and zero. I only mentioned it because other people kept mentioning the income limit for dependents. I acknowledge that the question is answered and I've accepted that answer. Thanks though.

[xmasbaby0]

@GNock_2024 Not sure if this will console you at all----but even if you could claim them as "qualified relatives" (and you cannot) all you would get is a non-refundable $500 credit for other dependents for each one which would only reduce your tax liability.  You would not get a refund for claiming them.  You would not get any child related credits like earned income credit or child tax credit.  You would not be able to file as Head of Household.   So you are missing out on a comparatively small tax credit if they do not live with you for all of 2024.   It is unfortunate that your kindness and generosity  to your friend are being met with anger and/or threats of reporting you to the IRS.