Who should claim the baby on taxes when parents live together but are not married?

My best friend had a baby this year, she is not married but lives with her boyfriend. Her boyfriend carries the baby on his insurance through his job, his HR said he should claim the baby on his taxes. I think she should claim him regardless of who carries him on insurance. Is there some reason that one should claim him over the other? Is it based on who makes more?Who should claim the baby on taxes when parents live together but are not married?
Both unmarried parents who live together are entitled to claim the child for all the benefits, but only one of them can. They cannot split the benefits. Either one takes all the benefits for a child or the other takes all the benefits for the child. If the parents cannot agree then the parent with the higher income will be granted to childs tax benefits by the IRS.





The benefits of claiming a child are:


(1) dependency exemption


(2) child tax credit


(3) additional child tax credit


(4) dependent care benefits


(5) education credits and/or deductions


(6) earned income credit


(7) head of household, but only for the parent who pays more than half of the costs of maintaining the household -- both cannot qualify for this because both cannot pay more than half the cost.





Richard K


Master tax Advisor


HR Block





This advice was based upon my understanding the law in effect at the time it was written as it applies to the facts provided by you. See my profile for more infromation.Who should claim the baby on taxes when parents live together but are not married?
I agree with the HR Block Tax Adviser. If they live together, the one who benefits most should claim the child. Only one can claim head of household and that is the one who provides more than the cost of maintaining the household. The person that claims this filing status must have a dependent child on his tax return.


This happened to me. I claimed my baby as head of household, he paid child support, the daycare %26amp; all medical bills. As my baby got older 8 yrs. or so, we alternated the years and gave one another a hand written letter giving permission to do so. But this was long ago and laws change frequently.


I advise you to please have your taxes filed by a licensed professional CPA since you now have a dependent and have to use the longer form 1040A. The CPA is there to guide you with his expertise and answer all your questions in order to keep you from getting in trouble with the IRS. You dont want any red tape with them because they will penalize you. I started using a CPA at the age of 25 and still do. They are up to par with ALL laws, whats allowed and whats not. Dont be afraid.
If they live together, the one who benefits most should claim the child. Only one can claim head of household and that is the one who provides more than the cost of maintaining the household. The person that claims this filing status must have a dependent child on his tax return.





Check the link below to get an estimate.





Christine EA Master Tax Adviser


Check out my profile





This advice was prepared based on our understanding of the tax law in effect at the time it was written as sit applies to the facts that you have provided. http://www.hrblock.com/taxes/tax_tips/in鈥?/a>


http://www.hrblock.com/taxes/tax_calcula鈥?/a>
Only custodial parent can claim the child. It does not count who is paying child support. If both parents have equal custody of the child, the parent with higher AGI can claim the child.





Who can claim the child if the parents are divorced, separated or unmarried, read: http://taxipay.blogspot.com/2008/03/chil鈥?/a>
The parent that had the highest amount of taxable income should claim the child. They may qualify for the EIC and the additional child tax credit which would allow them to get a bigger return and not owe as much in taxes. If they are looking to save money, I would do it this way.
One of them will file Head of Household and one of them will file Single. They'll have to look at their entire income/deduction picture to determine who should claim the child and who should be Head of Household (it doesn't have to be the same person)
Whoever pays over 50% of the child's total support is the one entitled to the dependency exemption.