Right to Claim as a Dependent-Has the other parent waived their legal right to you so you can claim her as a dependent on your return this year?

[PSBMANLIJZM]

My partner and I are not married. We have two children. I am filing head of household and my partner is filing single. We are claiming one child each on our tax returns. Since I received the highest income, Turbo Tax Deluxe Editon software is asking if I waived my legal right so that my partner can claim my daughter as a dependent on her tax forms. We live together in the same home. We have a verbal agreement that we will claim one child each but have not filled out a Form 8332. How should I answer the question above and do we need to fill out Form 8332? 

[MonikaK1]

Form 8332 is for a custodial divorced or separated parent who relinquishes the tax benefit for the dependent to a noncustodial parent. This form wouldn't apply to the situation you described.

If you and your partner live together, and you are both the parents of the children who live with you, then you both qualify to claim them and can decide between you to each claim one child on your separate tax returns. List only the child you are claiming on your tax return. If a child's SSN appears on more than one return, the second return will be rejected.

See this IRS webpage for more information on who qualifies for the Child Tax Credit.

To file as head of household, you must furnish over one-half of the cost of maintaining the household for you and a qualifying person. Therefore, only one of the parents will have contributed more than one-half of the cost of maintaining the household and be eligible to file as head of household. See here for more information.

For tax year 2022, the Child Tax Credit reverts back to the benefits available prior to the American Rescue Plan as follows:

• Reverts back to up to $2,000 for 2022 – 2025
• Each dependent child must be under age 17
• Refundable up to $1,400, but no longer fully refundable
• Advance payments were not issued for tax year 2022 
• The credit is available if you earn up to $200,000 as single taxpayer or head of household (or up to $400,000 if you are a married couple filing jointly)

See this article for more information.

[PSBMANLIJZM]

Thanks for your response. To confirm, we don't need to fill out a Form 8332 and I may answer yes to the question I waived my legal right and give permission to my partner to claim my daughter as a dependent.

[PSBMANLIJZM]

Thanks for your response. To confirm, we don't need to fill out a Form 8332 and I may answer yes to the question I waived my legal right and give permission to my partner to claim my daughter as a dependent.

[DawnC]

You do not need to fill out Form 8332.   But you should only list the child you are claiming on your return and your partner only lists the child they are going to claim.    Don't enter anything about the other child each of you is not claiming on your returns.    You list one and your partner lists one - neither return should have 2 dependents entered.  

[PSBMANLIJZM]

Do I answer yes a giving up my legal right?

[Vanessa A]

No, if you are not claiming the child that your partner is claiming, you should not list them on your return.  You should delete them from your return by clicking the trash can next to their name.  If you are only claiming one, then you would not be giving up your right to claim them. Only the one that you are claiming should be listed on your return.  

[PSBMANLIJZM]

I am claiming one dependent filing as head of household and my partner is claiming the other dependent filing as single. Turbo Tax Deluxe is asking my partner to answer the question above? If she answers yes then she is able to claim my daughter as a dependent if she answers no it does not.  We have a verbal agreement, so I am assuming and trying to find out if the answer is yes to the question above?

[MonikaK1]

As DawnC and VanessaA also stated, the child that is not being claimed should not be listed on the return at all for the partner that is not claiming that chlid. Remove any reference in TurboTax to the child not being claimed on the return. If the child is not being listed on the return, you shouldn't get a question in TurboTax about whether you are giving up a legal right. 

Giving up the legal right refers to the situation where you are divorced or separated and using Form 8332 to voluntarily give the right to a noncustodial parent who would not otherwise be able to claim the child.

[PSBMANLIJZM]

I agree with you for filing my return as head of household with daughter #1. I did not need to answer the question above.  

On the other hand, when my partner is filing as single with daughter #2, it asked her if daughter #2 stayed an equal number of nights with both parents.  The answer is yes.  Then it asked who had a higher income. My partner answered daughter #2 other parent did.

Then it asks to answer Right to Claim daughter #2 as dependent this year.  If daughter#2 other parent waived their legal right to you so you can claim her as a dependent on partner return this year. 

If she answers yes daughter #2 qualifies as a dependent and if she answer no daughter #2 does not qualify as a dependent.

Sorry for the confusion.

[TeresaM]

Because you are not married, you will not need to have a Form 8332, which is used in situations of divorce. This is a little complex, with the two returns and one house, but your partner can complete the dependent interview as below and it will not prompt for the form. 

You cannot both claim Head of Household, because only one person can provide more than half of the support for the household. So be sure to decide which of you is claiming that and the other should file Single, with a dependent, which may qualify for tax credits in the Deductions and Credits section. 

[PSBMANLIJZM]

Let me provide you with the screenshots with the interviews questions my partner is answering.

According to the replies in the thread my partner and I don't need a Form 8332, but how should my partner answer the question below? 

If I click on the question, do I need a legal agreement if both parents live together but aren't married underlined in blue? 

Which parent can claim the dependent on their tax return if we live together but aren't married?
If you're living with the other parent and aren't married and don't have an agreement, the parent who has the highest adjusted income for the year has the right to claim the child on their tax return. However, you're allowed to have an agreement between the two of you about who will actually claim the child. In the case of an agreement, you won't have to fill out Form 8332. Keep in mind, the parent that claims the child as a dependent is the only one allowed to claim all the child-related credits such as the Earned Income Credit and Child and Dependent Care Credit. The other parent should not list the child on their tax return.

If I answer yes, my partner can use Lauren as a dependent. 

___________________________________________________________________________________________

If I answer no to question above under right to claim Lauren as a dependent. It states it turns out Lauren doesn't qualify as your dependent.  Also the federal refund drastically decreases. 

We are not claiming the same daughter on our returns. My partner is filing single. 

How should I answer question regarding do I have custody agreement and Has Lauren's other parent waived the their legal right to you so you can claim her as a dependent on your return this year?

[DawnC]

You can change the Living Situation question to (the first option) just Bianca.     You don't need Form 8332.    See that link.

[PSBMANLIJZM]

The screenshot missing in my previous message.

Is my partner able claim Lauren as a dependent and qualify for a tax breaks?

[TeresaM]

Yes, with this box checked No, your partner is still able to claim Lauren as a dependent. 

This question is asking of Lauren pays more than half of her living expenses because a child that does cannot be claimed as a dependent. It is extremely rare that a minor supports themselves but that is the way the IRS rules are written.

It is an entirely different question from the screen with did you provide more than half of the support for the household, which applies to determining Head of Household filing status and some tax credits.