Dependents Issue for Tax Purposes

[EileenB]

What is the name of your state? AR My husband wants to file with Joint Custody and claim both kids as his dependents til the end of this year. He said we could each claim one next year. He works and I stay home. What is the biggest difference in me claiming sole custody vs. joint? Also, what are his reasons for wanting to claim both on taxes? Am I getting the shaft?

[LdiJ]

Originally Posted by EileenB

What is the name of your state? AR My husband wants to file with Joint Custody and claim both kids as his dependents til the end of this year. He said we could each claim one next year. He works and I stay home. What is the biggest difference in me claiming sole custody vs. joint? Also, what are his reasons for wanting to claim both on taxes? Am I getting the shaft?

Ok....I assume you are getting divorced? You will need to settle the issue of the tax exemptions within the context of the divorce settlement.

If you are going to be working this year...then you definitely shouldn't agree to him claiming both children. The maximum you should agree to is that you each claim one. If you aren't going to be working then you might as well let him claim them for this year....because the exemption wouldn't benefit you.

Is this true joint custody? A 50/50 timeshare?...or will you have primary residential custody? If so, even if he claims the children, you could still use them as your qualifying children for "head of household" status and EIC.

It is very much the "norm" for parents to have joint legal custody (joint decision making) with one parent having primary residential custody. Even if you are agreeing on a true 50/50 timeshare, that doesn't necessarily eliminate child support. Generally the parent with the higher income will pay some child support to the other parent.

If you don't have an attorney...and you don't feel comfortable with what is going on...then its probably better for you to get one. You may qualify for legal aid if since you aren't working.