DACA client

[DANRVAN]

This is new one for me and would appreciate your input.

Taxpayer is in US under DACA (C33).  She has SS# and works at bank. I believe she would qualify for EIC under the Substantial Presence Test since she has been in US for over three years.

She has 2 sons, one born in the US and one born before she came here, they both have SS numbers.

Boy friend (also client) is the father and they have lived together except while he was detained by immigration for over 6 months in 2017, then went back to work.

He made $16,000 and she made $23,000.  The want to file to maximize tax benefits.

In this case, it appears she can file as HHH, claim 2 dependents, EIC,  CTC and credit for child care while he will file single.

Can anyone see if I am overlooking anything?

Thanks.

 

[Pacun]

If you can argue that his detention was a temporary absence...

Head of house hold for her this year with the one child she supported more than 50%. If not single with one dependent.

Father Single with the other dependent.

Both get EIC and if they are not married, no problem.

If not a temporary absence, then file her as HH with the two children and he will be single with no dependents.

Next year, if they don't marry, they can swap the kids as they see it fit, just keep in mind that HH requires the extra questions.

You don't say if the mother has a social security number but I will assume she does.

[DANRVAN]

Thank you for your response Pacun.   I found some case law that supports the argument for temporary absence for the boyfriend.

My big concern is to get over the hurtle of resident alien which is new to me.  Looks like "The Substantial Presence Test" will be met.

[DANRVAN]

5 hours ago, Pacun said:

 

Head of house hold for her this year with the one child she supported more than 50%. If not single with one dependent.

 

I don't believe providing more than 50% of support to a dependent is a factor in qualifying for HHH, but the taxpayer must provide over 50% of the cost of keeping up a home for the year.

[Pacun]

Substantial presence is needed when you are deciding to file 1040NR or 1040. In your case, you must file 1040 and the rules for EIC are: Your child live with you more than 6 months in the tax year and that both have a social security number without a label that reads "Not authorized to work" and that that number was assigned before the due date of the return.