Can my finance claim 2 on his w-4 form?
You can claim an unrelated person as your dependent under the Qualifying Relative rule (yes, I know, it sounds wrong but it isn’t) if ALL of the following conditions are met: 1. He or She is a US citizen or resident. 2. He or She did not file a joint return with another taxpayer. 3. He or She is not the Qualifying Child of another taxpayer. 4. He or She lived in your home ALL year. 5. You provided more than 50% of his or her entire support for the entire year. 6. He or She had less than the personal exemption amount ($3,500 for 2008) in gross income, excluding non-taxable Social Security benefits. 7. Your relationship is not illegal under local law, even if such law is unenforced. These are the states where it violates local law: Florida, Michigan, Mississippi, North Carolina, North Dakota, Virginia, and West Virginia. There are local ordinances against cohabitation in many other states though, so check your local laws first. For further information see IRS Pub 501. Here’s a link:
