Claiming child on taxes/applying for college financial aid

[happytobehere]

What is the name of your state (only U.S. law)?my permanent address is in PA but the child support was done in OH and child lives with ex in IL.

I have always paid child support and claimed the child on my taxes. My ex would like to claim him this year only and sign a "waiver" promising to give me the money when they receive it. The ex would like to claim the child in order for him to apply to colleges and said he can get better financial aid this way. I wanted to make sure this is legal before agreeing to it. I don't know if a tax person or lawyer would be best to talk to or someone else.

thanks for your time.

[Ohiogal]

That will not happen.

[Ohiogal]

From [url=http://www.finaid.org/questions/divorce.phtml]FinAid | Answering Your Questions | Divorce and Financial Aid[/url]

If your parents are separated or divorced, the custodial parent is responsible for filling out the Free Application for Federal Student Aid (FAFSA). The custodial parent for federal student aid purposes is the parent with whom you lived the most during the past 12 months. (The twelve month period is the twelve month period ending on the FAFSA application date, not the previous calendar year.) Note that this is not necessarily the same as the parent who has legal custody. If you did not live with one parent more than the other, the parent who provided you with the most financial support during the past twelve months should fill out the FAFSA. This is probably the parent who claimed you as a dependent on their tax return. If you have not received any support from either parent during the past 12 months, use the most recent calendar year for which you received some support from a parent. These rules are based on section 475(f)(1) of the Higher Education Act of 1965.

Note, however, that any child support and/or alimony received from the non-custodial parent must be included on the FAFSA.

Please note that the discussion given above applies even if the parents each have equal 50% custody. The term "custodial parent" is not synonymous with custody. Usually the parent with whom the student lived the most during the past 12 months is sufficient, since there are an odd number of days in the year. However, in some cases a tie-breaker is needed, such as when the divorce was recent or when there are an even number of days in the year (e.g., a leap year). In such circumstances it is based on whichever parent provided more support. If that is not definitive, then the financial aid administrator at the college will make the decision, and this will usually be based on whichever parent has the greater income. (Some colleges will follow the logic in a multiple support agreement, but they are under no obligation to do so.)

and:

Obligations of Stepparents

My parents are divorced, and the parent I'm living with has remarried. Does my stepparent have to report his or her income and assets on the FAFSA?

Yes, provided that the parent you're living with is the one filling out the FAFSA (your custodial parent). If your stepparent is married to them at the time you fill out the FAFSA, they must report their income and assets even if they weren't married to them in the previous year.

My custodial parent remarried and signed a prenuptial agreement that absolves the stepparent from financial responsibility for my education. Why does my stepparent have to provide financial information on the FAFSA?

Prenuptial agreements are ignored by the federal need analysis process. After all, two individuals (parent and stepparent) cannot make an agreement between them that is binding on a third party (the federal government). The federal government considers the stepparent a source of support regardless of any prenuptial agreements to the contrary. If a stepparent marries the parent, he or she is considered responsible for supporting the parent and children even if he or she is unwilling to do so.


College Support and Income Taxes

Can a non-custodial parent who is paying college tuition directly to a college take advantage of education tax benefits such as the Hope Scholarship?

The non-custodial parent can only take advantage of the education tax benefits when he or she claims the child as a dependent. If the non-custodial parent does not claim the child as a dependent on his or her income tax returns, but the custodial parent does, the custodial parent can claim an education tax credit based on the tuition paid by the non-custodial parent.

By virtue of the child support, your income is taken into consideration because child support you pay is based on income. It matters not who claims the child.

[StampGirl]

Doesn't matter who claims the child as a dependant on their taxes when it comes to the FAFSA.

I wasn't able to claim the kids on mine (judge gave the ex the deductions) but was still able to use them for financial aide because they lived with me.