In the US, you can live with your significant other without being married. While you may share expenses, if you are the only one doing the heavy lifting, you can gain tax benefits from it under certain conditions. For that to happen, you need to mention them as your dependents. Now, certain conditions exist for dependants on tax return and gaining benefits. If you are here to learn, this article discusses claiming dependant income tax benefits.

The Benefits of Partner for Dependant on Tax Return

As we have already established, you are the one doing the heavy lifting financially, but there are certain conditions to mention in the partner income tax return.

The primary condition is to give more than 50% of your share in the financial support for at least one year. Only then can you begin claiming your significant other as your dependant. You reduce your tax deductions and get dependant tax credits for up to $500.

Furthermore, you can also mention in your filing that you supported their medical expenses. You do need to itemize each expense properly to gain any benefit.

What are The Main Requirements for Claiming Tax Deductions?

In short, your partner has to be a relative, as per IRS rulings, even though you are a partner. You need to check all the conditions before considering them dependant on tax return. Some of these conditions are as follows.

Living Together

The first important distinction is that you as a couple must live together for at least one whole year. You aren't eligible if it is shorter. Medical situations and vacations do not count as being away and will still be considered part of the complete year.

Earning Less Than $4,700

If you want to file dependant income tax deductions, your partner must earn less than $4,700 annually. Anything higher means your partner can fully care for themselves financially and will no longer be a dependent.

Here, it doesn't matter if you pay for everything. Their income is now taxable, so they aren't dependent on higher incomes.

Providing 50%+ Financial Support

Typical household expenses include medical expenses, rent, utility bills, education, groceries, etc. If you pay more than 50% of these expenses, you can include them as dependents on your tax filings.

Keep in mind that you need to prove that and must have all the documentation as proof. Keeping track is tricky as you must have the receipts and bills to prove it.

Further Conditions

The following are other common points that must all be true.

• They aren't registered as dependent on someone else.
• You cannot file as a joint couple.
• Your partner must be a US citizen, resident, or a resident of Mexico or Canada.

How to Claim Partner Income Tax Return?

To claim your dependant on tax return, you must file a 1040 Form and mention their social security number. Furthermore, you must mention the above requirements on the form and itemize them properly. The only difference in documentation that might occur is based on which state you reside in or if a local government accepts this cohabitance.

Should You and Your Partner Get Married?

Typically, it isn't recommended because you get a good tax return deduction amount, which you won't get when you are married. If your partner still isn't earning enough, you should wait until your combined income is high enough. If you do get married, your tax return as a married couple can be as high as $25,000. Now, you aren't getting the tax break as partners.

Again, the best option is to wait until you are financially stable when you can get better advice from a professional based on your unique scenario.

What About The Children of Your Dependant?

You can provide the benefits you gain from the government to your partner's children if you have registered as a couple. The children must be under the age of 26.

Important FAQs

Is it Possible to Claim Partner as Dependant on Tax Return?

Yes, it is possible to claim your partner as a dependant for deductions in your tax return filings. You must fulfill the requirements the IRS sets, such as minimum support, among other conditions. If your application filing is successful, it is essential to consider potential savings on your income.

Can I Consider My Partner as a Spouse for Tax Purposes?

No, under the state law, anyone living with you as your partner isnt your spouse if they havent been registered as your spouse. So, you cannot use their status to fill it out as married couples do.

Will I be Able to File as Head of the Household with a Dependant Partner?

According to section 152 (c) or (d), you are not eligible to become the household head as long as you have one dependant living with you, which is your partner.

Who Cannot Be Claimed as a Dependant on Tax Return?

If you are married, you cannot claim your spouse as a dependant because you can already file jointly as a family and get tax rebates. You cannot also claim if your partner is married to someone else yet living with you. If they aren't US citizens, you need to clear that first.

Final Words

In this article, we discussed that if you have your partner as a dependant on tax return, your overall tax liability is significantly reduced. Your partner is considered a relative and has certain conditions, such as supporting over 50% of expenses. If you have claimed your partner as your dependant, their other dependency status will be removed. Finally, you must have proper qualification documentation to fulfill the requirements of the IRS.