Introduction and Tax Question

January 26, 2010

Hi all.

Just introducing myself. I'm a mommy in a mama/mommy household. I posted a tax question in another forum but I also wanted to post it here in case anyone has insights.

Thanks!

My wife and I live in Massachusetts and adopted a sibling pair with special needs from foster care last year. We cannot file as married for federal taxes, and we therefore end up paying far more taxes than our straight friends. Additionally I pay imputed income tax on her health insurance.

I'm looking to mitigate some of that.

I make twice as much as my wife. I was going to claim both children as dependents and also claim head of household status. I'd therefore be claiming both adoption credits that I'd use over 5 years.

However, if we were married we'd get more of the money sooner as we'd have a larger combined refund. I'm therefore wondering if it makes more sense for us to each file as head of household and each claim one child as a dependent, thereby each claiming one of the adoption credits.

I know it's all quite confusing. And I'm not trying to take advantage. Just wondering how to make the best of a pretty frustrating situation where we are literally paying to be discriminated against.

Thanks.

travelguy73

January 29, 2010

MommyMama

Hi all.

Just introducing myself. I'm a mommy in a mama/mommy household. I posted a tax question in another forum but I also wanted to post it here in case anyone has insights.

Thanks!

I'm looking to mitigate some of that.

I make twice as much as my wife. I was going to claim both children as dependents and also claim head of household status. I'd therefore be claiming both adoption credits that I'd use over 5 years.

However, if we were married we'd get more of the money sooner as we'd have a larger combined refund. I'm therefore wondering if it makes more sense for us to each file as head of household and each claim one child as a dependent, thereby each claiming one of the adoption credits.

I know it's all quite confusing. And I'm not trying to take advantage. Just wondering how to make the best of a pretty frustrating situation where we are literally paying to be discriminated against.

Thanks.

I'm pretty sure that you both won't be able to claim head of household at the same address, because one of the requirements is that you contribute over half the cost of living (maintaining the home), and you can't both be doing that. I know I need to do more research on the subject because my partner and I will have to decide who claims the kids (or if we share). And I'm not sure, once you claim one or more of them, if you can alternate. You probably have to make a decision and stick to it for a while. That's something a tax professional will have to advise on.