Child deduction & Income taxes

[Red Bull]

What is the name of your state (only U.S. law)? New York


Been married for a few of years. Always filed income taxes jointly. Joint bank account. Own a house. Had a baby in '08. Separated in '09. My wife filed separately for '08 without telling me and claimed the child deduction. Said I could claim the mortgage interest deduction. I am guessing it is okay from a tax issue direction.. But from a family law issue, would my silence and just going along with something which was dictated to me after the fact be seen as negative against me in any divorce proceedings?

 

[Ohiogal]

What is the name of your state (only U.S. law)? New York


Been married for a few of years. Always filed income taxes jointly. Joint bank account. Own a house. Had a baby in '08. Separated in '09. My wife filed separately for '08 without telling me and claimed the child deduction. Said I could claim the mortgage interest deduction. I am guessing it is okay from a tax issue direction.. But from a family law issue, would my silence and just going along with something which was dictated to me after the fact be seen as negative against me in any divorce proceedings?

It may not be okay from a tax issue direction. And whose name is on the mortgage and the title of the house? If you don't raise grief about it, you would be seeing as agreeing with her claiming the child this year.

 

[LdiJ]

It may not be okay from a tax issue direction. And whose name is on the mortgage and the title of the house? If you don't raise grief about it, you would be seeing as agreeing with her claiming the child this year.

When two parents shared the same household for the whole year, the rule is that they can decide between them which one claims the exemption for the child, and if they cannot decide, the tiebreaker rule is that the parent with the higher AGI is the one who gets to claim the child.

The rule on the mortgage, is that in order to be able to claim the mortgage interest and property tax you must 1) Be obligated to pay the mortgage, and 2) must have actually paid it.

Other than that, I won't comment further without knowing the parties respective income levels.

 

[Red Bull]

When two parents shared the same household for the whole year, the rule is that they can decide between them which one claims the exemption for the child, and if they cannot decide, the tiebreaker rule is that the parent with the higher AGI is the one who gets to claim the child.

The rule on the mortgage, is that in order to be able to claim the mortgage interest and property tax you must 1) Be obligated to pay the mortgage, and 2) must have actually paid it.

Other than that, I won't comment further without knowing the parties respective income levels.

I would have the greater AGI, but not by a terrible amount (about $5000). As far as the mortgage, the mortgage is in my name alone, and it was paid out of our joint bank account.

 

[Red Bull]

It may not be okay from a tax issue direction. And whose name is on the mortgage and the title of the house? If you don't raise grief about it, you would be seeing as agreeing with her claiming the child this year.

Thnk you for the reply.

Mortgage is in my name alone, but deed is both of ours.

To what extent would my beeing seen as agreeing to her claiming our son for the year, uncontested, be a blow against me?

 

[mistoffolees]

Thnk you for the reply.

Mortgage is in my name alone, but deed is both of ours.

To what extent would my beeing seen as agreeing to her claiming our son for the year, uncontested, be a blow against me?

If the mortgage is in your name alone, then you can claim it.

Her claiming the tax deduction for the child shouldn't have any impact on the divorce proceedings. If it comes up at all, you simply state that only one of you could get the deduction and you simply decided she'd take it and you'd take the mortgage deduction. Since you're both apparently still in the same house, it shouldn't affect the custody decision.

Going forward, it won't matter. The IRS has very specific rules on who is entitled to the deduction. After your divorce, only one of you will be entitled to the deduction - there are few, if any, cases where it's ambiguous. The one who is entitled to it via IRS rules wins - regardless of what you've done in the past.

You can agree to override that (or the court can order it), but if you do, the one who is entitled to the deduction by IRS rules would be required to fill out an 8334 form each year giving the deduction to the other person. The IRS isn't interested in your divorce, only in giving the deduction to the right person and the only way to change it is an 8334.

So, after the divorce, the person entitled to the deduction will be:
1. The person where the child spends the most nights
2. If that one's a tie, the one with the higher AGI.
3. There are several other tie-breakers, but I don't remember them - and I doubt if very many people get past the AGI tie breaker, anyway.

You can find the specifics on the IRS web site.

 

[LdiJ]

If the mortgage is in your name alone, then you can claim it.

Her claiming the tax deduction for the child shouldn't have any impact on the divorce proceedings. If it comes up at all, you simply state that only one of you could get the deduction and you simply decided she'd take it and you'd take the mortgage deduction. Since you're both apparently still in the same house, it shouldn't affect the custody decision.

Going forward, it won't matter. The IRS has very specific rules on who is entitled to the deduction. After your divorce, only one of you will be entitled to the deduction - there are few, if any, cases where it's ambiguous. The one who is entitled to it via IRS rules wins - regardless of what you've done in the past.

You can agree to override that (or the court can order it), but if you do, the one who is entitled to the deduction by IRS rules would be required to fill out an 8334 form each year giving the deduction to the other person. The IRS isn't interested in your divorce, only in giving the deduction to the right person and the only way to change it is an 8334.

So, after the divorce, the person entitled to the deduction will be:
1. The person where the child spends the most nights
2. If that one's a tie, the one with the higher AGI.
3. There are several other tie-breakers, but I don't remember them - and I doubt if very many people get past the AGI tie breaker, anyway.

You can find the specifics on the IRS web site.

Its form 8332.

Most people don't get past the person with whom the child spends the most nights.

However, there is a new "twist" for 2009 forward. Its the person with whom the child spends the most nights, unless there is an ususual arrangment that has the child spending significantly more of their time with one parent, even if the other parent has more overnights. A specific example that the IRS gave of an unusual arrangment is the following:

The child spends 4 nights a week with dad, but mom is a stay at home mother and the child spends all days with mom, while dad is working. The IRS defines that as the child spending the significant majority of their time with mom, and therefore mom is the custodial parent.

So basically, its whoever the child spends the most nights with, unless there is an arrangment that has the child spending significantly more of their time with one parent, even if the other parent has the most nights.

 

[Red Bull]

Her claiming the tax deduction for the child shouldn't have any impact on the divorce proceedings. If it comes up at all, you simply state that only one of you could get the deduction and you simply decided she'd take it and you'd take the mortgage deduction. Since you're both apparently still in the same house, it shouldn't affect the custody decision.

We are presently separated since Feb, but lived together throughout '08.


Thank you for your response.

 

[LdiJ]

We are presently separated since Feb, but lived together throughout '08.


Thank you for your response.

Dad, the honestly real "deal" is that its pretty irrelevant for the future if mom claims the child this year.

Odds are that in the divorce you will either agree or be ordered to alternate the exemption for the child (requiring form 8332). If not, its going to go by the IRS rules.

Odds are that it would be a relatively fair "split" for 2008 for you to be claiming the house, and mom the child. Mom can't claim the house because she is not on the mortgage, and is therefore not "obligated" to pay the mortgage.

Therefore, its not going to hurt for the future, one way or the other, for you to not fight mom claiming the exemption for the child, for 2008.

 

[Red Bull]

Dad, the honestly real "deal" is that its pretty irrelevant for the future if mom claims the child this year.

Odds are that in the divorce you will either agree or be ordered to alternate the exemption for the child (requiring form 8332). If not, its going to go by the IRS rules.

Odds are that it would be a relatively fair "split" for 2008 for you to be claiming the house, and mom the child. Mom can't claim the house because she is not on the mortgage, and is therefore not "obligated" to pay the mortgage.

Therefore, its not going to hurt for the future, one way or the other, for you to not fight mom claiming the exemption for the child, for 2008.

thank you.

 

[Ohiogal]

When two parents shared the same household for the whole year, the rule is that they can decide between them which one claims the exemption for the child, and if they cannot decide, the tiebreaker rule is that the parent with the higher AGI is the one who gets to claim the child.

The rule on the mortgage, is that in order to be able to claim the mortgage interest and property tax you must 1) Be obligated to pay the mortgage, and 2) must have actually paid it.

Other than that, I won't comment further without knowing the parties respective income levels.

I KNEW you would be along which is why I answered how I did and tried to get information for you.