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Title: what happens if Post by: Ben20033 on March 20, 2015, 06:54:35 PM Does anyone know What happens if the noncustodial parent claims the kids on their taxes?
Title: Re: what happens if Post by: rarsweet on March 20, 2015, 08:42:37 PM If it states in the uniform support order that the noncustodial parent does not have the tax exemption you would file for contempt of the order. The either parent would be liable for all costs related to contempt, including lawyer fees. You should also file a claim with the IRS. They will ask you to prove you are the custodial parent. You can send them your court orders. My sister did not have a court order with her ex, the IRS accepted documentation from the children's school stating where they lived, which was with her not their father. The IRS made him pay it back, they garnished future tax returns, with interest, until it was paid in full. They also prohibited him from qualifying for earned income credit for 3 years I think. Either way you can go ahead and claim the child, and the IRS will sort out who has to repay.
Title: Re: what happens if Post by: livednlearned on March 21, 2015, 07:57:30 AM Does anyone know What happens if the noncustodial parent claims the kids on their taxes? My ex did this. Our custodial order said that I was to claim S13 on my taxes. One year, I filed my taxes and received a letter that said I had to send in court documents to verify that I was entitled to claim S13. So I did. I photocopied my divorce decree and sent it to them. All that happened was that it added a month or so to the process, but it was easily sorted out. Title: Re: what happens if Post by: Nope on March 21, 2015, 07:14:00 PM If it states in the uniform support order that the noncustodial parent does not have the tax exemption you would file for contempt of the order. The either parent would be liable for all costs related to contempt, including lawyer fees. The caveat to this is that if you make more money then the offending party, a judge most likely will order that each party is still responsible for their own lawyers fees. In the jurisdiction I deal wiith, my DH's BPDex was found in contempt. He spent nearly $5k getting the case in front of the magistrate, and because she doesn't make a lot of money, the judge ordered that she pay "what is usual and customary in the jurisdiction". Which was $500, plus filing fees. However, it is nice to hear that the IRS will get involved. I wonder if that is done on a case by case basis though. DH was paying over 80% of the children's expenses and had them on his insurance, but they lived with their mom. Would it really have been fair or proper to insist she could claim both kids? I'm sure there is an IRS guideline on this. Title: Re: what happens if Post by: rarsweet on March 21, 2015, 07:30:50 PM According to the tax law the custodial parent has the right to the exemption unless they sign a waiver to allow non custodial parent to claim thee child, I think its a form 5422 something like that, you can Google it. Then there are tie breaker rules if both parents share 50/50 time. Its whoever has the higher income. If they have the same income, it is whoever paid more fore the actual support. Its called child support test worksheet. It can boil down to who has a higher rent or mortgage amount. You can't claim all your expenses like personal cell phone, manicures, etc. But household bills, groceries, school supplies, daycare, diapers, etc count. I keep receipts for everything, even diaper cream
Title: Re: what happens if Post by: ForeverDad on March 23, 2015, 08:51:55 AM IRS Form 8332. IRS doesn't want to have to deal with court orders if it can avoid it, it wants their form to be used, but maybe they still allow submission of the court order, especially if it's an older one or under certain circumstances.
Excerpt Note. If the decree or agreement went into effect after 1984 and before 2009, you can attach certain pages from the decree or agreement instead of Form 8332, provided that these pages are substantially similar to Form 8332. See Post-1984 and pre-2009 decree or agreement on page 2... . Post-2008 decree or agreement. If the divorce decree or separation agreement went into effect after 2008, the noncustodial parent cannot attach certain pages from the decree or agreement instead of Form 8332. See Release of claim to exemption below... . Confused and worried about the assortment of terms and conditions? I sure am. Fortunately I haven't had to deal with it since we don't alternate years for child deduction. One tactic is to file taxes before the ex files if you can, get it in first and then it's up to the ex to try to submit documents to contest your filing. Title: Re: what happens if Post by: livednlearned on March 23, 2015, 09:07:07 AM One tactic is to file taxes before the ex files if you can, get it in first and then it's up to the ex to try to submit documents to contest your filing. That's what I did the second year. :) It worked. Title: Re: what happens if Post by: Nope on March 23, 2015, 11:18:03 AM I just looked at Form 8332. It appears to be a release for the custodial parent to fill out if they want to wave their right to the deduction. So that only helps in a certain set of circumstances. In my situation DH was given 90% physical custody with 50/50 parenting rights. The Child Support order (which the kid's mom has completely ignored) gives DH the authority to claim both children every year. DH still needs to sit down with his tax preparer. But since the BPDex hasn't done anything else she was ordered to do, I'd be very surprised if she didn't claim one kid as she has in years past.
We'll see what the tax preparer says to do if that is the case. |