If someone earns $30,000/year, can they get any deductions for 2 stepchildren?

Question

Next year I might marry a man that earns $30,000. At that point, I wouldn't be working. I currently have 2 children who don't have a legal relationship with their natural father, and my boyfriend wants to adopt them. At the time of tax filing, they would still be "stepchildren" and not "adoptive" children...I read that he can still claim them though, since I wouldn't be filing separately?

If he could claim them, how much of a deduction do you think he could get for claiming them?

Thanks!

Answer 1

Stepchildren are treated the same as biological children for tax purposes, so once you are married, he could claim them anyway even if you weren't filing jointly.  And you're right it makes sense for you to file jointly.

Answer 2

Either the natural father can claim them as dependents on his tax returns OR you can claim them on yours, depending upon who is actually paying the bills.

You can file a joint tax return (or not) after you marry and claim them as dependents.

Answer 3

As long as he is supporting them and they qualify as such under the tax laws he can claim them as dependents.

I don't have this years information handy but based on recent years he would be able to reduce his taxable income somewhere between $6,500 and $7,000

Hope this helps

Jerry-the-bookkeeper

Answer 4

You don't get deductions for claiming dependents.  You get exemptions.  Each exemption reduces your taxable income by $3,500 for 2008.  Step children are treated exactly the same as natural children when claiming exemptions for them.  

Unless you voluntarily surrender the exemptions to the biological parent in writing, or have a very explicitly worded decree, he has no legal claim to the exemptions.

Assuming that you'd be filing a joint return with your new husband you'd get a total of 4 exemptions on your return, one personal exemption each for you and your husband and one dependency exemption for each of the children.  The actual tax savings will depend upon your total income but a family of 4 with an income of $30k won't pay any income tax once the various exemptions, deductions, and credits are taken into account.  In fact you'll probably get back more than was paid in due to the Additional Child Tax Credit and the EIC.

Answer 5

If you marry and the 4 of you live together, the children will be "qualifying children" to both you and the stepdad.  One of you can claim the children, but not both.

The children are NOT qualifying children to the bio-dad.  The only way he could claim the children is if a) the special rules for divorced and separated parents apply and b) you sign the paperwork to allow him the option to claim them as qualifying relatives.  (If you sign the paperwork, only the bio dad can claim the kids.)

As far as value.  The stepdad, filing separately, would get $7000 in additional exemptions and the child tax credit.