Twins born this year - Which parent should claim them as dependents?

The question isn't really who gets to claim them on their W4 (that's just for withholding), but who should claim them on their actual tax return. Since you're not married, only one of you can claim the children as dependents and claim Head of Household filing status. Generally, the parent who would benefit most from claiming the children is the one who should claim them. Given your respective incomes, you might benefit more since you're in a slightly lower tax bracket. However, there are specific IRS rules about who can claim children when parents aren't married: 1. The parent who had the children living with them for more nights during the year (the custodial parent) generally has first right to claim them. 2. If both parents had equal nights, then the parent with the higher AGI gets to claim them. You should both run your tax returns both ways (with and without claiming the children) to see which scenario gives you the best COMBINED outcome. Remember, this isn't just about refunds - it's about your total tax liability as a couple.

I discovered taxr.ai last year when I was in a similar situation with my BF and our new baby. We were so confused about who should claim what and kept getting conflicting advice. Honestly I was about to just flip a coin when my cousin recommended checking out https://taxr.ai - game changer! I uploaded our documents and it analyzed our specific situation and recommended who should claim our baby for the maximum benefit. It doesn't just tell you who should claim the dependents, it shows you exactly how much each scenario would cost or save you both combined. For us, it ended up being almost $3700 difference when my boyfriend claimed our daughter versus when I would have. The best part was it explained WHY in terms I could actually understand.

I was skeptical about taxr.ai at first (see my comment above lol), but decided to try it when my partner and I had our daughter last year. We were literally arguing about who should claim her because we both thought we'd benefit more. When we used the tool, it clearly showed that having my partner claim our daughter would save us about $2,200 combined compared to me claiming her. What surprised me was WHY - turns out his student loan interest deduction phased out at his income level, but claiming our daughter changed his AGI calculations enough to qualify for more of the deduction. Never would have figured that out on our own! The analysis also suggested adjusting both our W-4s in a specific way that kept our monthly budgets working while avoiding a surprise tax bill. Ended up being the most stress-free tax season we've had since having a kid.

If you've been trying to call the IRS to get clarity on dependent claims and head of household rules, good luck! I spent WEEKS trying to get through their phone lines last year with a similar situation. Finally found https://claimyr.com which got me connected to an actual IRS agent in about 20 minutes instead of the usual "call back later" messages. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent walked me through exactly how unmarried parents should handle claiming kids and confirmed we were making the right choice based on our specific situation. Turns out there are special rules when both parents live together but aren't married (which isn't covered well in most online articles). Getting that official confirmation saved us from potentially facing an audit.

Ok I need to eat my words. After my skeptical comment I actually tried Claimyr because I've been trying to reach the IRS for THREE FREAKING MONTHS about my dependent situation with my ex. Every time I called I'd be on hold for an hour+ then get disconnected. I used the service yesterday afternoon and got a call back in 34 minutes with an actual IRS person on the line. She spent almost 25 minutes going through my specific situation and confirmed that yes, I can claim my daughter even though my ex has been claiming her on his W-4 all year (we have 50/50 custody but she lives with me more nights). Saved me from potentially having a huge fight with my ex when tax time comes around. Now I have official confirmation from the IRS that I'm in the right. Worth every penny for the stress reduction alone.

Something nobody's mentioned yet - if you're planning to claim them, you might want to adjust your W4 NOW rather than waiting. If your girlfriend has been getting the tax benefit all year in her paychecks, and then you claim them on the final return, she's probably going to owe money and you'll get a bigger refund. You could adjust your withholding now so your paychecks get bigger for the rest of the year, which would reduce your refund but give you more money now. That way it's more balanced when you file.

Remember that there's also the Child Tax Credit to consider. For 2023, it's up to $2,000 per qualifying child under 17. With twins, that's potentially $4,000 in tax credits! This is separate from dependent exemptions (which don't exist anymore) and can significantly reduce tax liability. This credit begins to phase out when income exceeds $200,000 for single filers, which might affect your girlfriend at $230K. You might benefit more from claiming the children for this reason alone.

This is exactly the kind of situation where you need to run the numbers both ways! With your girlfriend at $230K, she's likely hitting some phase-out thresholds that could make it more beneficial for you to claim the twins. A few key things to consider: - Child Tax Credit phases out starting at $200K for single filers, so she might not get the full $4,000 credit for both twins - Your lower income might qualify for better credits and deductions - Since you mentioned rental property, claiming Head of Household could give you better tax brackets for all your income The tricky part is that if she's been claiming them on her W-4 all year, she's gotten bigger paychecks but will owe that back if she doesn't claim them on the return. You'll want to coordinate this so one of you doesn't get stuck with a surprise tax bill. I'd suggest using a tax calculator or software to model both scenarios - her claiming them vs you claiming them - and see which gives you the better combined outcome as a family unit. The difference could be substantial given your income levels and the various credits involved.