Significance

• Federal law does not recognize domestic partnerships even if the partnerships have been sanctioned by state or local governments. While that means that domestic partners can't file joint federal tax returns, it also means that the law does not specifically preclude a taxpayer from claiming an unmarried domestic partner as a dependent.
  
  

Law

• The Internal Revenue Code sets rules for who a taxpayer can claim as a dependent. Essentially, a dependent must be either a qualifying child or qualifying relative of the taxpayer. IRS publications don't make it very clear, but a person does not actually have to be related to the taxpayer to fit the definition of qualifying relative. The relevant information appears in Section 152(d)(2)(H) of the code, which refers to an individual who lives in the taxpayer's household.
  
  

Qualifications

• To claim a domestic partner -- or any unrelated individual -- as a dependent in a given year, that person must have lived with you for the entire year, and you must have paid the majority of the cost of supporting that person such as for shelter, food, clothing, medical care and education. Your domestic partner cannot have taxable income greater than the personal exemption amount, which was $3,650 as of the 2010 tax year and rises with inflation. Finally, your domestic partner must be a U.S., Canadian or Mexican citizen or a legal permanent U.S. resident.
  
  

Consideration

• The Internal Revenue Code says you cannot count someone as a member of your household, and therefore cannot claim a dependent deduction, if your relationship with that person "is in violation of local law." This provision is essentially a holdover from the days when it was commonly illegal for unmarried couples to live together or for people of the same sex to engage in sexual relations. According to the Los Angeles law firm of Reish & Reicher, because so many of these laws have been repealed or struck down, it's uncertain to what extent this provision is even enforceable.
  
  

Advisory

• This article is intended for information only and is not legal advice. Always consult a qualified tax professional to discuss the details of your specific situation.