Claiming child dependent advice/help?

Question

My husband and I split up a year ago and have decided on 50/50 custody for our daughter. I'm not quite sure who, or how we should claim her on one of our taxes. We are still married and are waiting for the tax return money to get the divorce. At first we decided to alternate claiming her on our taxes each year. But someone told us that there would be a good chance of us getting audited because our taxes wouldn't be consistent year to year. My husband wants to claim her every year and just give me 30-40% of the amount he gets back for her. The reasoning for the 30-40% is because he wants to start paying for her medical, but that hasn't started yet, currently she is on state medical and I pay the small amount it costs to keep her on my account. Another reason for him wanting to claim her is because he makes more money than I do and pays more in taxes. What do you think would be the best decision for our situation?

Answer 1

You don't get to choose who takes the child off on their taxes. There are tax rules that determine that. The parent with whom the child spends the most nights with during the year, will be the one to claim the child on their taxes. IF the custodial parent wishes to, they can sign an 8332 form allowing the non custodial parent to claim the child tax credit, they an do so. But it is not a refundable credit. It only lowers ones tax liability.



A non custodial parent (or the parent that the child spends less nights with during the year) can NEVER claim the child on their taxes to receive earned income credit or file head of household. That will always stay with the custodial parent. It would be fraud for a non custodial parent to claim that a child lives with them for the majority and collect EIC.



So...Let's assume the child will be living with you. Then YOU are the one that will be claiming the child on your taxes every year and the father will still have to pay you child support and a portion of her medical expenses that aren't covered by insurance. What someone pays in support and medical expenses have nothing to do with taxes.



ADDED: to Catlover..your ex is only receiving the child tax credit every other year. He is not receiving the earned income credit, uness of course he is comitting fraud by saying the child lives with him for more than half the year. (That is a specific question they ask when preparing taxes.) But my guess is, you have been losing out on potentially thousands of dollars every other year by not claiming your child for the EIC on your taxes. The noncustodial parent can claim the child for the tax credit and the custodial parent can claim the head of household and EIC at the same time. Most parents do not know this and they think that bc the noncustodial parent claimed the child that they can't. But the custodial parent (the parent the child lives with more than half the year) is the ONLY parent that can receive the EIC. If the IRS found out that someone had received EIC they were not entitled to, they would have to pay all that money back plus interest and penalties.

Answer 2

Since you are still married, you will file a tax return with a married filing separate status and one of you will claim the child as a dependent. Who supports the child and where is the child living?

You may want to read the instructions on who can claim the dependent ( child) based on the criteria listed ( irs.gov) in publication 1040, beginning pages.

The split 30-40% may not mean anything since all the information is available.

Answer 3

the parent the child spends the majority 'nites' with claims the child

and the only way the other parent would claim the child would be the #8332 waiver the eligible parent signs and gives to that parent

you probably need to get something in writing you can depend on for support--whether you go to family court or not

but consider the changes that could occur in the next few years that might totally eliminate your current agreement of 30-40% of what he gets back for her--the gov't doesn't reimburse you for having children

there is a personal exemption of $3700, not a REFUND, a $500 child tax credit, also not a REFUND, the child does not live in his household he is not eligible for EIC which is based on earned income not based on the child, there is one area that could be a refund and that is the additional child credit(the amount not used previously as the child tax credit)--how he is going to calculate the 30-40% he gets back for her is a biggie

of course he wants to claim her but he also needs to support her

Answer 4

Without knowing numbers for each of you, no way to tell which is better financially. It's not always the higher-paid parent who would get more.



Since you're still married, another option is to file a joint return. This is legal even if you have split up and are living separately.



If you can't agree on who will claim her, then the parent she spends the most nights with during the year gets the claim.

Answer 5

And you and he will have to be ready to accept the responsibility and consequences of making your own decision about this matter with out asking for advice about this matter from any one else because it will have to be your own decision.

And you do have to sign the completed tax return where the below statement is included for your use at this time in your life.

Under penalties of perjury, I declare that I have examined this return, and to the best of my knowledge and belief, it is true, correct, and accurately lists all amounts and sources of income I received during the tax year.

Your signature Date Your occupation

All of the rules that have to met for this purpose can be found at the www.irs.gov website

It is not half the year that will determine who is qualified to claim the child for the dependency exemption by the noncustodial parent when the IRS becomes involved in helping you and your wife to determine this matter for the both of you.

183 nights during the year will be needed for this purpose and since you do not have the custody of the child you are required to have a copy of the signed 8332 tax form attached to your correctly completed 1040 federal income tax return from your wife for this purpose.

Go to the www.irs.gov website and use the search box for New Rules for Children of Divorced or Separated Parents



http://www.irs.gov/formspubs/article/0,,id=207333,00.html



Post-1984 and pre-2009 divorce decree or separation agreement.

If the divorce decree or separation agreement went into effect after 1984 and before 2009, the noncustodial parent may be able to attach certain pages from the decree or agreement instead of Form 8332. The decree or agreement must state all three of the following.

Post-2008 divorce decree or separation agreement

Beginning with 2009 tax returns, the noncustodial parent can no longer attach pages from the decree or agreement instead of Form 8332 if the decree or agreement went into effect after 2008. The noncustodial parent will have to attach Form 8332 or similar statement signed by the custodial parent and whose only purpose is to release a claim to exemption. The noncustodial parent must attach the required information even if it was filed with a return in an earlier year.

Hope that you find the above enclosed information useful. 12/22/2011

Answer 6

you should have had all of this positioned into the divorce contract because now it ought to land up being a court docket conflict. In maximum circumstances on figure claims the toddler 1/2 the 365 days and the custodial figure claims the toddler the different 1/2 of the 365 days. so that you truly a lot screwed your self the following because in case your ex spouse would not believe this plan you'd be arguing until eventually next tax time. it really is what takes position once you attempt to attempt this stuff yourselves.

Answer 7

My ex and I alternated years and never had any problems with the IRS.

That works because you say you are both splitting, caring for your child, 50-50.