What is the name of your state? New York
I think I know the answers to my questions, I just would like confirmation from the tax gurus here (I'm a CPA, but do not practice tax).
My fiance and I lived together for all of 2007. He only had $660 in income for 2007 (on a 1099-Misc). He also received $501 per month during 2007 in Veterans Disability Compensation (non-taxable). He gave me $350 of his government check each month to pay bills (he kept $150 each month to pay for his car insurance, gas, and some entertainment....so he gave me about $4800 for the year).
Our joint monthly bills for rent, utilities, phone, food, and entertainment averaged $2000 per month (so roughly $24,000 for the year). Half of our joint living expenses is $12,000, plus the $1800 he kept for his car insurance/gas is $13,800...50% of that is 6,900...he provided 6012 + 660 = $6672, which is less than the 50% amount of $6900).
Since he only had $660 in income for 2007, he would not normally have to file taxes for 2007. But, because of the economic stimulus package, he would be eligible for the $300 rebate, due to his receiving $6k in VA benefits...and so he would need to submit his "dummy" tax return to get the stimulus check.
So my questions:
1. I believe that I can claim my fiance as a dependent on my 2007 tax return, since we lived together for all of 2007, he did not have more than $3400 of earned income in 2007, and I paid more than 50% of his expenses throughout the year. Correct?
2. I would still file as single and not head of household, because he is not related to me...correct?
3. Also...if I claim him, he would not have to file the "dummy" return to get the stimulus check, because he would longer be eligible for it...correct?
Thanks in advance for your help!!