Question

For this project, your research support must include a reference to the Internal Revenue Code and also to a court case that is relevant to your facts and conclusion.
You may include additional support (rulings, cases, etc.) however, you must include a reference to an IRC section and relevant court case in your support for your conclusion.
You should consider both the filing status and personal and dependency exemptions issues involved.
Research Question
During 2014, Larry Lindal lived with (in his 1 bedroom house) and supported Gina Hart, an unrelated 22-year old woman to whom he is not married.
Gina’s only income was $3,750 from waitressing jobs.
Larry, a U.S. citizen, lived with Gina for the entire year and was not married to anyone else during the year.
Larry and Gina live in Mt. Clemens, Michigan.
Under Michigan state law, it is considered a misdemeanor for unmarried individuals to cohabit.
Larry has come to you with questions regarding filing his tax return for 2014.

Solution Preview

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According to IRC Section 2b, to claim one’s domestic partner as a dependent on his taxes, his partner must meet the requirements of a qualifying dependent. His partner must have lived with him the entire year and he must have paid at least half of his partner's support. His partner cannot earn more than the annual personal exemption amount, which is $3,900 as of 2013. Finally, his partner must be a U.S. citizen, resident alien, U.S. national, or a citizen of Canada or Mexico. It is obvious that regarding these provisions, all has been passed by Larry Lindal and his domestic partner, Gina Hart. But these are not without limitation....

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