IRS rule change for qualifying child (2005 onward).?

IRS notice 2008-5 just came out.

If a boyfriend supports a girlfriend and her (but not his) child, and she doesn%26#039;t work, he will be able to claim both of them as qualifying RELATIVES (assuming all dependency rules are met). This will allow him to claim the $3400 dependency exemption on his taxes. It will *not* allow him to claim HOH, the child tax credit, child care or EIC.

If the girlfriend works and makes less than $3400, she can still be claimed as a dependent and can file to get a refund solely to get any income taxes withheld. She cannot claim EIC (with or without a qualifying child). If she does, the boyfriend cannot claim either one of them.

This is a clarification of the 2005 rule change. If a b/f didn%26#039;t claim the exemptions due to a strict interpretation of the IRC code, he can go back and file an amended return for 2005 and 2006.

IRS rule change for qualifying child (2005 onward).?

Good to know....thanks.

The original rule was a bit harsh.

I%26#039;m in Minnesota and he still won%26#039;t be able to claim the girlfriend here due to the %26quot;violation of local law%26quot; rule.

WZ

IRS rule change for qualifying child (2005 onward).?

VB, thanks for the information. It will affect several of my clients this tax season, plus it looks like some 1040Xs will be in order.

It also changes the answer to some recent questions here on Yahoo Answers.