My partner and I aren’t married but have an 18 month old daughter together. My brother in law said that whoever makes the most $$ should claim her to maximize our benefit. He calculated for us that the dependent benefits equaled xx amount. How should we split that money? We keep our money separate and contribute to the household expenses proportional to our incomes which is 35% paid by me and 65% paid by him. Should we split it 35% /65% of that xx amount or 50%/50%? Thanks in advance

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RandoReddit16 t1_jaeurm2 wrote on February 28, 2023 at 10:46 PM

This isn't true, there are the IRS rules and the who maximizes most "rules".... Whoever gets to claim the child will also qualify as Head Of Household and could potentially qualify for Earned Income Tax Credit (EITC). If you're willing to share your respective incomes here, I can explain which would benefit the most and why.

Now onto the IRS rules, whoever is providing a majority of the financial support for the child, should be claiming the child.

Losing EITC and HoH when getting married is another form of the "marriage penalty" for lower income earners.

forgottocarry0 OP t1_jaewcph wrote on February 28, 2023 at 10:57 PM

Thanks for the explanation. He makes ~130k and I make 65k from my job + an additional $4,000 from renting my condo out.

RandoReddit16 t1_jaezxdu wrote on February 28, 2023 at 11:22 PM

Okay so it really won't matter for either of you. The HoH brackets and Single brackets are the same above 24% or 89k. Him claiming kid saves an estimated $5,100, you claiming is roughly $4,300

RandoReddit16 t1_jaezz0h wrote on February 28, 2023 at 11:23 PM

This isn't accounting for how your state income tax might work, if applicable.