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Thread: OT: Tax question

  1. #1
    Waterboy
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    OT: Tax question

    I have a question about claiming dependents for taxes. I have 3 kids with my ex. We are in the middle of a divorce. We have no formal paperwork on custody of the kids. Just a verbal agreement that the kids will live with me and he will pay me child support. The kids are with me living with family. My question is who has the right to claim the kids as dependents on there taxes. And is there a way for me to know when i file mine if he clammed them already. Is it first come first serve or is there no way for me to know if he filled with them or not.

  2. #2
    Waterboy
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    Hope this helps

    Quote Originally Posted by Kim A New Jets Fan
    I have a question about claiming dependents for taxes. I have 3 kids with my ex. We are in the middle of a divorce. We have no formal paperwork on custody of the kids. Just a verbal agreement that the kids will live with me and he will pay me child support. The kids are with me living with family. My question is who has the right to claim the kids as dependents on there taxes. And is there a way for me to know when i file mine if he clammed them already. Is it first come first serve or is there no way for me to know if he filled with them or not.
    Seems like a lot of situations here. I dont post alot but Hope this helps(taken from IRS website):




    Children of Divorced or Separated Parents
    In most cases, because of the residency test (see item (3) under Tests To Be a Qualifying Child in Table 3, a child of divorced or separated parents will be a qualifying child of the custodial parent. However, if the child does not meet the requirements to be a qualifying child of either parent, the child may be a qualifying relative of one of the parents.

    Special rule for divorced or separated parents. A child will be treated as the qualifying child or qualifying relative of his or her noncustodial parent if all of the following apply.
    The parents:

    Are divorced or legally separated under a decree of divorce or separate maintenance,

    Are separated under a written separation agreement, or

    Lived apart at all times during the last 6 months of the year.

    The child received over half of his or her support for the year from the parents.

    The child is in the custody of one or both parents for more than half of the year.

    Either of the following applies.

    The custodial parent signs a written declaration, discussed later, that he or she will not claim the child as a dependent for the year, and the noncustodial parent attaches this written declaration to his or her return. (If the decree or agreement went into effect after 1984, see Divorce decree or separation agreement made after 1984, later.)

    A pre-1985 decree of divorce or separate maintenance or written separation agreement that applies to 2006 states that the noncustodial parent can claim the child as a dependent, the decree or agreement was not changed after 1984 to say the noncustodial parent cannot claim the child as a dependent, and the noncustodial parent provides at least $600 for the child's support during 2006. See Child support under pre-1985 agreement, later.




    If the support of the child is determined under a multiple support agreement, this special rule for divorced or separated parents does not apply. See Multiple Support Agreement in Publication 501 for more information.

    Custodial parent and noncustodial parent. The custodial parent is the parent with whom the child lived for the greater part of the year. The other parent is the noncustodial parent.

    If the parents divorced or separated during the year and the child lived with both parents before the separation, the custodial parent is the one with whom the child lived for the greater part of the rest of the year.

    Example.

    Under the terms of your divorce, your child lived with you for 10 months of the year. The child lived with your former spouse for the other 2 months. You are considered the custodial parent.

    Written declaration. The custodial parent must use either Form 8332 or a similar statement (containing the information required by the form) to make the written declaration to release the exemption to the noncustodial parent. The noncustodial parent must attach the form or statement to his or her tax return.

    The exemption can be released for 1 year, for a number of specified years (for example, alternate years), or for all future years, as specified in the declaration. If the exemption is released for more than 1 year, the original release must be attached to the return of the noncustodial parent for the first year, and a copy must be attached for each later year.

    Divorce decree or separation agreement made after 1984. If the divorce decree or separation agreement went into effect after 1984, the noncustodial parent can attach certain pages from the decree or agreement instead of Form 8332. To be able to do this, the decree or agreement must state all three of the following.
    The noncustodial parent can claim the child as a dependent without regard to any condition, such as payment of support.

    The custodial parent will not claim the child as a dependent for the year.

    The years for which the noncustodial parent, rather than the custodial parent, can claim the child as a dependent.


    The noncustodial parent must attach all of the following pages of the decree or agreement to his or her return.
    The cover page (write the other parent's social security number on this page).

    The pages that include all of the information identified in items (1) through (3) above.

    The signature page with the other parent's signature and the date of the agreement.

    Any questions..or for an english version to the many different scenerios you may have..pm me

  3. #3
    Waterboy
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    [QUOTE=ricanman69] Hope this helps

    Thank you. I will read it a few times and see if I can understand it then. LOL

  4. #4
    JetsInsider.com Legend
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    I deal in this all the time.

    Don't screw around and ask for advice from people, call a tax advisor and call one as soon as possible. They're the only ones who will give you a clear cut answer.

  5. #5
    Waterboy
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    I am a Tax Advisor

    Quote Originally Posted by RutgersJetFan
    I deal in this all the time.

    Don't screw around and ask for advice from people, call a tax advisor and call one as soon as possible. They're the only ones who will give you a clear cut answer.

    RJF - Good heads up here. Just trying to give the publication here and an outlet if needed.

    Great news on Schaino btw!
    Last edited by ricanman69; 12-04-2006 at 03:33 PM.

  6. #6
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    Quote Originally Posted by ricanman69
    RJF - Good heads up here. Just trying to give the publication here and an outlet if needed.

    Great news on Schaino btw!

    So does that mean she has to prove that they were with her most of the time?

  7. #7
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    I always thought it was first come first serve........

  8. #8
    Waterboy
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    Quote Originally Posted by ucrenegade
    So does that mean she has to prove that they were with her most of the time?
    Without going into extreme detail - yes.

    She has to establish that she is the primary care-giver (51%) for the children to be able to claim them in this possible dispute as dependants. But like I said without knowing all of the information..this is just the simple answer in dependent disputes.

    The situation here is delicate and a sit down of each party..or atleast tax professionals may be necessary for proper interviewing and illustration of best possible tax savings.
    Last edited by ricanman69; 12-04-2006 at 05:41 PM.

  9. #9
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    Quote Originally Posted by ricanman69
    RJF - Good heads up here. Just trying to give the publication here and an outlet if needed.

    Great news on Schaino btw!
    Thank you.

    I deal in getting divorced investment accounts distributed for a good part of my day, and when I talk to clients I don't even pretend to know what I'm talking about when it comes to taxes. Everything is so situational and only someone with proper training is qualified to advise on taxes.

    That's why I tell people when they ask me about withholding advice that they should never be asking anyone but a tax advisor those questions. When it comes to the IRS you don't screw around.

  10. #10
    Waterboy
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    Quote Originally Posted by ucrenegade
    I always thought it was first come first serve........
    Unfortunately thats not the case. For example..If the spouse claims all of the children, and has no legal proof, while the other does (bills showing payment of expenses for the household where the children reside) the second spouse can call the irs and fight this and be able to claim the children.

    Ucrenegade..good questions as this is a common misinterpretation of the law. Any further help..PM me and ill be happy to help.

    PS 7-5 is pretty awesome. Going to the game on Sunday! Go Jets!!

  11. #11
    Waterboy
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    thank you for the help

  12. #12
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    Kim.......my sister is the custodial parent for her children and her husband claimed the kids on his income tax return but had to give it back to the IRS because she was allowed to claim them..........

  13. #13
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    Quote Originally Posted by Kim A New Jets Fan
    I have a question about claiming dependents for taxes. I have 3 kids with my ex. We are in the middle of a divorce. We have no formal paperwork on custody of the kids. Just a verbal agreement that the kids will live with me and he will pay me child support. The kids are with me living with family. My question is who has the right to claim the kids as dependents on there taxes. And is there a way for me to know when i file mine if he clammed them already. Is it first come first serve or is there no way for me to know if he filled with them or not.
    I do taxes with my father for a living.

    I will simplify it for you.

    Whoever's address shows up in the child's school records is the one that can claim them. If your address is listed you can, if his is listed he can.

    Word of advice. as much as i imagine you would like to avoid the hassle, especially involving children, never go by just a verbal agreement.

  14. #14
    Waterboy
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    Quote Originally Posted by PMCRW
    I do taxes with my father for a living.

    I will simplify it for you.

    Whoever's address shows up in the child's school records is the one that can claim them. If your address is listed you can, if his is listed he can.

    Word of advice. as much as i imagine you would like to avoid the hassle, especially involving children, never go by just a verbal agreement.

    Trying not to be a pain here but thats a bit misleading. If the home address matches the school taxes, that is not the end. If he shows payment of some of those school taxes and also pays in total over 51 percent, that statement is false. He could claim them all under a different address and be head of household. Now if there is no proof of payment by the ex..he has no leg to stand on.

    Great point about the verbal agreement.
    Last edited by ricanman69; 12-04-2006 at 08:50 PM.

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