Tax people... A question

[Michelle My Bell]

I am in the process of a divorce. My ex wants to claim the kids next year and I don't know what to think of that. We have 5 kids, 3 of whom we can claim for tax credits and such. Would it be possible for one of us to claim 2 and the other claim 3 and we each get the credit, or can we only claim a maximum of 3 between the two of us?

 

Also, would it be a bad idea for me to allow him to claim the kids even though they live with me?

 

Thanks for any help offered!

[MrsBear]

I'm not a tax person, but I think it comes down to who has custody and pays for the majority of things related to the kids.

 

Do you or he pay for childcare?

 

By that, I don't mean paying child support, but who pays the childcare provider. If he's paying child support, that doesn't necessarily mean he gets to take the tax deduction for the kids if they live with you and you have primary or sole custody. I do think this is something you should talk to a tax adviser about since there are many scenarios that come into play - like who takes care of most things, where the kids live most of the time, who pays for childcare, who pays for the majority of their living expenses (like clothing, food, etc.).

[MrsBear]

If you have him take the tax deductions, that means you lose the tax credits and the personal deduction per child. Personally, if the kids lived with me, I'd be the one to take the deduction since they live with me, I'm managing everything for them, and I'm likely the one arranging and paying for childcare.

[Seeker of Schole]

Generally that is something that is set out in the divorce decree. If your divorce will not be final before then I would ask him to split the kids tax wise. If it will, then whatever is worked out and in the decree is legally binding.

[SonshineLearner]

Generally that is something that is set out in the divorce decree. If your divorce will not be final before then I would ask him to split the kids tax wise. If it will, then whatever is worked out and in the decree is legally binding.

:iagree:

 

It's usually who has the kids over 50% of the time, I think. It should be in the divorce decree....

[laundrycrisis]

My parents divorced when I was 13 and the only remaining dependent child. They agreed to trade off from year to year who claimed me as a dependent on their taxes. When it came time for me to go to college and fill out financial aid forms, I had to list both of their incomes because they had both been claiming me as a dependent in recent years. To make it worse, my mom had remarried and she and her new DH filed jointly - so I had to list their entire household income. I needed financial aid because my mom was not on board with helping out enough with college expenses, but I was unable to get any due to having to list three incomes because I had been claimed as a dependent on those tax returns.

[angela in ohio]

The person who supports them should get to claim them. Unless he is providing you with a lot of support, I think you should claim them.

 

There is a difference between the child tax credit and the exemption. He cannot claim the child tax credit for any of them, as they didn't live with him for over 50% of the year. The child has to be under 17 at the end of the year, too, so I think you would only have four, right?

 

He could claim the exemption for them as a dependent, but then you can't claim the child tax credit. You could let him have the oldest as an exemption, if you can't use the child tax credit for her anyway, I guess, as long as you don't need the exemption.

 

There is an excess child tax credit that is available if you have more than three children, too, which you may or may not qualify for depending on your income and credits.

[Joanne]

It is decided by decree, not by who has physical custody. Sure, you can make a case that the person who has them claims them, but in reality, that's not how it is done. Remember that the non custodial parent pays towards their care.

 

So, divorcing parents negotiate. I agreed to let xh claim all 3 when we divorced. He had an income; I had some tutoring income. I wanted OUT so bad that I didn't think through the ramifications of him claiming all 3 from then on.

 

I regret that, but it has been amended. He claims the oldest 2 (one of whom turned 17 this week) and I claim the youngest. I "get" the earned income credit for the younger two (and got it for the oldest this year since he lived with me more than 50% of the year).

 

I'd encourage you to NOT allow your stbxh to claim all the kids every year. I'd suggest you divide the kids and each claim a couple; perhaps he can claim the "extra".

[Michelle My Bell]

The person who supports them should get to claim them. Unless he is providing you with a lot of support, I think you should claim them.

 

There is a difference between the child tax credit and the exemption. He cannot claim the child tax credit for any of them, as they didn't live with him for over 50% of the year. The child has to be under 17 at the end of the year, too, so I think you would only have four, right?

 

He could claim the exemption for them as a dependent, but then you can't claim the child tax credit. You could let him have the oldest as an exemption, if you can't use the child tax credit for her anyway, I guess, as long as you don't need the exemption.

 

There is an excess child tax credit that is available if you have more than three children, too, which you may or may not qualify for depending on your income and credits.

 

He gives me a set amount each month, but it is not enough to live on (hence the job I just got :001_smile:)

 

They live with me 100% of the time and it will remain that way according to our agreement.

 

Yes Angela, oldest dd will be 18 this fall.

 

Thank you, this has been very helpful. A lot to think about. I don't know about the excess child tax credit. I'll have to look into that.

[Michelle My Bell]

It is decided by decree, not by who has physical custody. Sure, you can make a case that the person who has them claims them, but in reality, that's not how it is done. Remember that the non custodial parent pays towards their care.

 

So, divorcing parents negotiate. I agreed to let xh claim all 3 when we divorced. He had an income; I had some tutoring income. I wanted OUT so bad that I didn't think through the ramifications of him claiming all 3 from then on.

 

I regret that, but it has been amended. He claims the oldest 2 (one of whom turned 17 this week) and I claim the youngest. I "get" the earned income credit for the younger two (and got it for the oldest this year since he lived with me more than 50% of the year).

 

I'd encourage you to NOT allow your stbxh to claim all the kids every year. I'd suggest you divide the kids and each claim a couple; perhaps he can claim the "extra".

 

OK, I now realize I really need to look into this more and understand it better. I appreciate your thoughts. I provide all care above the agreed child support payments so I feel I have the right to claim them. Even if there are extras that come up, he does not provide any extra support.

[Michelle My Bell]

My parents divorced when I was 13 and the only remaining dependent child. They agreed to trade off from year to year who claimed me as a dependent on their taxes. When it came time for me to go to college and fill out financial aid forms, I had to list both of their incomes because they had both been claiming me as a dependent in recent years. To make it worse, my mom had remarried and she and her new DH filed jointly - so I had to list their entire household income. I needed financial aid because my mom was not on board with helping out enough with college expenses, but I was unable to get any due to having to list three incomes because I had been claimed as a dependent on those tax returns.

 

Oldest dd will be going to college very soon so this is very helpful to me. I will share this with my x.