Taxes

[abstract99]

What is the name of your state? Az

I am going back to court soon and I am trying to get all of my questions answered. My ex has 4 children. 2 are mine and 2 are not. She claims all 4 of the kids on her taxes. My inlaws are accountants and they explained that except for the purposes of "daycare" exemptions on the taxes, that because of her income she actually only benefits from claiming only 2 of the children because the 3rd and 4th child will not increase her return at all. Can I ask that I be able to claim our 2 every year because she already has the other two that I am not the father of.

NOTE: She is married to the father of the other 2.

 

[ceara19]

What is the name of your state? Az

I am going back to court soon and I am trying to get all of my questions answered. My ex has 4 children. 2 are mine and 2 are not. She claims all 4 of the kids on her taxes. My inlaws are accountants and they explained that except for the purposes of "daycare" exemptions on the taxes, that because of her income she actually only benefits from claiming only 2 of the children because the 3rd and 4th child will not increase her return at all. Can I ask that I be able to claim our 2 every year because she already has the other two that I am not the father of.

NOTE: She is married to the father of the other 2.

Would claiming all 4 kids make a difference when her new husband's income is included?

 

[tigger22472]

Good question Ceara because although she may not get a child credit or EIC from any children over two, she does get the standard deduction, which would calculate to the fact that she does benefit from claiming them.

 

[GrowUp!]

Would claiming all 4 kids make a difference when her new husband's income is included?

The new hubby of OP's ex has no right financially benefitting from children that are not his.

OP...you can certainly ask for the right to claim both kids every year, but realistically, you and the ex will get to claim ONE every year. Her children w/her current spouse, quite frankly, doesn't concern you.

 

[ceara19]

The new hubby of OP's ex has no right financially benefitting from children that are not his.

OP...you can certainly ask for the right to claim both kids every year, but realistically, you and the ex will get to claim ONE every year. Her children w/her current spouse, quite frankly, doesn't concern you.

The other 2 ARE the husband's kids, so he wouldn't technically be benefiting from the oldest 2. If mom and new hubby filed separately, she would claim her 2 kids with the OP and hubby would claim the 2 kids they have together.

 

[LdiJ]

What is the name of your state? Az

I am going back to court soon and I am trying to get all of my questions answered. My ex has 4 children. 2 are mine and 2 are not. She claims all 4 of the kids on her taxes. My inlaws are accountants and they explained that except for the purposes of "daycare" exemptions on the taxes, that because of her income she actually only benefits from claiming only 2 of the children because the 3rd and 4th child will not increase her return at all. Can I ask that I be able to claim our 2 every year because she already has the other two that I am not the father of.

NOTE: She is married to the father of the other 2.

If mom is married then your inlaws may not be correct that their joint return wouldn't benefit by claiming all 4 children.

They would have to be very low income for that to be the case. They can only get EIC for 2 children, but daycare credits, the child tax credit and the additional child tax credit would be available for all 4 children.

So unless they maxed out even the additional child tax credit with just two kids (which would be amazing in a two income family...even two low incomes) there would be some benefit from claiming at least one of the other children.

Maybe you should try to agree that each of you claim one child. That's generally fair.

 

[DoTheRightThing]

Tax laws have changed, especially those involving who can claim the children and EIC. I recently took a tax course, and from my understanding an NCP cannot claim EIC on the children, so the only benefit OP would get would be the standard deduction, in doing that, the CP can still claim the children for the EIC (but not the standard deduction). I know, I'm not explaining this very well, I'm still real new to the whole tax thing. However, OP - on the list of Forum subjects, scroll all the way down to the tax section and post your question there. The tax professionals who respond there can answer your questions.

 

[LdiJ]

Tax laws have changed, especially those involving who can claim the children and EIC. I recently took a tax course, and from my understanding an NCP cannot claim EIC on the children, so the only benefit OP would get would be the standard deduction, in doing that, the CP can still claim the children for the EIC (but not the standard deduction). I know, I'm not explaining this very well, I'm still real new to the whole tax thing. However, OP - on the list of Forum subjects, scroll all the way down to the tax section and post your question there. The tax professionals who respond there can answer your questions.

I am one of the tax professionals who respond there, and I have already answered his question here.

 

[abstract99]

If mom is married then your inlaws may not be correct that their joint return wouldn't benefit by claiming all 4 children.

They would have to be very low income for that to be the case. They can only get EIC for 2 children, but daycare credits, the child tax credit and the additional child tax credit would be available for all 4 children.

So unless they maxed out even the additional child tax credit with just two kids (which would be amazing in a two income family...even two low incomes) there would be some benefit from claiming at least one of the other children.

Maybe you should try to agree that each of you claim one child. That's generally fair.

Their income IS low because she doesn't work. I have a copy of her taxes, where would I look to see if she qualified for the child tax credit? I know that they only claimed their 2 kids for the EIC because that is what my inlaws said when they looked them over. There are no daycare credits (even though I pay for it) because they don't go to daycare.

 

[LdiJ]

Their income IS low because she doesn't work. I have a copy of her taxes, where would I look to see if she qualified for the child tax credit? I know that they only claimed their 2 kids for the EIC because that is what my inlaws said when they looked them over. There are no daycare credits (even though I pay for it) because they don't go to daycare.

Well it depends on whether they filed a 1040A or a 1040.

On a 1040A the child tax credit appears on line 33 and the additional child tax credit on line 42.

On a 1040 the child tax credit appears on line 52 and the additional child tax credit on line 68.

The child tax credit plus the additional child tax credit will add up to no more than 1000.00 per child. So, if you add those two figures together and they got 2000.00 or less, then your children didn't make any difference to their return. If you add those two figures together and it adds up to more than 2000.00 but less than 3000.00 then one of your children made a difference to their return. If you add up those two figures and its more than 3000.00, up to 4000.00, then both of your children made a difference.

Many low income families don't benefit from the daycare credit (their credits get maxed out with EIC, child tax, and additional child tax credits) so they don't bother to include it on their return. I suspect that is the case here.

 

[tigger22472]

You know... I question the legality of the OP showing his in-laws the tax return of his ex and her husband... tax 'experts' or not I question this tactic severely.

 

[LdiJ]

You know... I question the legality of the OP showing his in-laws the tax return of his ex and her husband... tax 'experts' or not I question this tactic severely.

I didn't think about that (and should have). That actually is a gross violation of the privacy laws regarding tax returns. It might have been ok to show the return to a neutral tax professional for an opinion...in fact, that is ok for investigative/discovery type purposes, but showing it to the inlaws was a very BAD idea.

I suggest that OP doesn't mention that to the ex or to the court....and doesn't do it again.

 

[tigger22472]

I didn't think about that (and should have). That actually is a gross violation of the privacy laws regarding tax returns. It might have been ok to show the return to a neutral tax professional for an opinion...in fact, that is ok for investigative/discovery type purposes, but showing it to the inlaws was a very BAD idea.

I suggest that OP doesn't mention that to the ex or to the court....and doesn't do it again.

I agree because if I was in his ex wife's position and found out that he was showing MY private records that I was ordered by a court to produce to every Tom, Dick and Harry you bet your behind I would be pissed enough to look into some sanctions!!!! Absent a court order HE wasn't even entitled to see that information...let alone showing uninterested parties that PRIVATE information.

 

[abstract99]

I agree because if I was in his ex wife's position and found out that he was showing MY private records that I was ordered by a court to produce to every Tom, Dick and Harry you bet your behind I would be pissed enough to look into some sanctions!!!! Absent a court order HE wasn't even entitled to see that information...let alone showing uninterested parties that PRIVATE information.

The important info such as tax ID numbers as well as socials was all blocked out when it was sent to us so it makes no difference with a professional. And YES, if needed for court purposes we will attempt to get an outside CPA but it will be very hard since my father-in-law is very prominent in this town and audits a lot of the larger companies as well as does tax work for firms other than his own so it would be hard to get an impartial opinion.

And she wasn't court ordered. I requested them and they were sent, three months later but still sent.

 

[abstract99]

Well it depends on whether they filed a 1040A or a 1040.

On a 1040A the child tax credit appears on line 33 and the additional child tax credit on line 42.

On a 1040 the child tax credit appears on line 52 and the additional child tax credit on line 68.

The child tax credit plus the additional child tax credit will add up to no more than 1000.00 per child. So, if you add those two figures together and they got 2000.00 or less, then your children didn't make any difference to their return. If you add those two figures together and it adds up to more than 2000.00 but less than 3000.00 then one of your children made a difference to their return. If you add up those two figures and its more than 3000.00, up to 4000.00, then both of your children made a difference.

Many low income families don't benefit from the daycare credit (their credits get maxed out with EIC, child tax, and additional child tax credits) so they don't bother to include it on their return. I suspect that is the case here.

OK, the child tax credit does not have anything written there but the additional child tax credit reads 2,235. So she only benefits from one then so since I am only allowed to claim them on every 3rd year it would make sense to request permission to claim one of them every year.

Also the EIC reads a little over 2k but when you flip to schedule EIC it reads that she only put down the two kids from her new marriage.