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aichah · Jan 13, 2010, 08:18 AM

Hi, I have 4 kids, 17, 15, 11, and 4. I am separated and working full time.

In the past years I used to claim all my kids as dependents, but this year my oldest daughter is working, she made close
To $2000 for 2009.

Now my questions are;
1- Do I still claim her as a dependent, since I still fully support her and she is living with me

2- Even though I have her on my taxes as dependent, do I still have to file a separate tax return for her? She was paying
Income taxes, CPP and EI. I noticed that if I file for her, she gets some money back.

3- Someone mentioned that I can claim her as equivalent to spouse and enter her information instead of my spouse
Since I have been separated and don't receive any spousal help. The question is can I fill in her information in my spouse
Identification area and use her information on my taxes, i.e. I will have 3 dependents, and 1 equivalent to spuse.
Can she replace my husband on my taxes, and then I can still claim the other 3 kids as dependents?

I am not sure what scenario to go for, can you please help?

Thank you

ebaines · Jan 13, 2010, 10:42 AM

1, Yes - since she is under 19 you can claim her regardless of her income, as long as she didn't provide more than half of her own support for the year. I assume you are the custodial parent.
2. Yes, she should file a tax return. Be carefiul to follow the instructions for someone who is being claimed as a dependent of another person.
3. No - you are not married to you daughter, so you can not file as married! But you can file as Head of Household and claim all 4 kids as dependents - as long as you provided more than half the upkeep of the home and your husband didn't live at home for at least the last 6 months of 2009 (so that you are considered to be essentially unmarried). Filing as HoH will save you money compared to filing as single.

aichah · Jan 13, 2010, 12:50 PM

Thank you for your reply,
So I am still able to claim my 4 kids as dependent and still claim one of them as 'equivalent to spouse' in box 305? Right?

What do you mean I have to 'Be carefiul to follow the instructions for someone who is being claimed as a dependent of another person.'?
You mean when she files, she will be asked for that on the form?

Thanks

ebaines · Jan 13, 2010, 01:37 PM

I don't understand what you mean by "equivalent to spouse." I am assuming that you are filing as either "Single" or as "Head of Household," and as such you don't have a spouse. You mention box 305 - please clarify for me: what form are you referring to?

As for "being careful" - I was referring to when your daughter files, there are a couple of steps that are different when she completes her tax form as your dependent than what you may be used to: she can not claim herself as an exemption, and she has to figure the amount of standard deduction that she can take (it's not necessarily the usual $5700 deduction).

AtlantaTaxExpert · Jan 13, 2010, 01:50 PM

Aichah:

It would probably be best for you and your daughter to have your tax returns done by the SAME tax professional, so no mistake is made about whether your daughter claims her own personal exemption.

If you have a long-standing relationship with a competent tax professional, he/she will probably prepare your daughter's return for free or at a significant discount to their normal fees just to retain your business.