Dependent deduction

[scott_rhino]

Texas. My divorce pre-dates the Federal proclamation that the dependent deduction goes to the custodial parent. Of course, in my divorce agreement, it was set up that I take the deduction, even though I am not the custodial parent, as part of agreeing to the amount of child support I would pay. Has anyone ever fought this and been able to keep the divorce contract in force and take the deduction inspite of the Fed change?What is the name of your state?

[LdiJ]

Originally Posted by scott_rhino

Texas. My divorce pre-dates the Federal proclamation that the dependent deduction goes to the custodial parent. Of course, in my divorce agreement, it was set up that I take the deduction, even though I am not the custodial parent, as part of agreeing to the amount of child support I would pay. Has anyone ever fought this and been able to keep the divorce contract in force and take the deduction inspite of the Fed change?What is the name of your state?

Ok...here is the deal. The IRS is required to go by the tax code and regs only. They are NOT required to honor a state court order. The law has been clarified to indicate that they will only accept a form 8332 (form signed by the custodial parent releasing the deduction) however, to date we don't know whether or not they are going to obey that clarification. In the past, they have honored state court orders even though not required to do so. We won't know until they start investigating duplicate exemptions, which won't happen until months after the current tax season ends.

However, unless there is a duplicate exemption taken, the IRS isn't likely to question anything unless you happen to get chosen for an audit.

Also, bear in mind that your state court order is still valid on the state level. Therefore you can take the exemption, and then if the CP also takes it and the irs makes you pay back the refund, then you have recourse against the CP in state court.

[norm9838]

I filed my taxes after my ex-girlfriend and her husband claimed our daughter on their taxes on my year to claim her. They said it was a mistake and she told me to wait and file at the end of March. Ha, I efiled, got rejected, overnighted my taxes with copy of our court papers concerning paternity and visitation and tax information.

They processed it and 2 and 1/2 weeks later the money was in my account, no questions asked.

I asked her to sign the form since it was her supposed mistake and her husband said absolutely not. Especially since she called me on saturday to tell me about he mistake and then told me they got their money when she picked our daughter up on Sunday.

Funny thing is just the other day she saw me when I was with our daughter at practice at school for athletics and guess what she said.

Oh by the way I wanted to tell you to go ahead and file your taxes and I will let you claim our daughter on your taxes next year. I said What? Then I told her I had already filed and gotten back my money and then she said did you claim XXXXX and I said yes and I sent my papers from the court as proof. You should of seen the look on her face.

It was priceless!!!!!

[ceara19]

Originally Posted by norm9838

I filed my taxes after my ex-girlfriend and her husband claimed our daughter on their taxes on my year to claim her. They said it was a mistake and she told me to wait and file at the end of March. Ha, I efiled, got rejected, overnighted my taxes with copy of our court papers concerning paternity and visitation and tax information.

They processed it and 2 and 1/2 weeks later the money was in my account, no questions asked.

I asked her to sign the form since it was her supposed mistake and her husband said absolutely not. Especially since she called me on saturday to tell me about he mistake and then told me they got their money when she picked our daughter up on Sunday.

Funny thing is just the other day she saw me when I was with our daughter at practice at school for athletics and guess what she said.

Oh by the way I wanted to tell you to go ahead and file your taxes and I will let you claim our daughter on your taxes next year. I said What? Then I told her I had already filed and gotten back my money and then she said did you claim XXXXX and I said yes and I sent my papers from the court as proof. You should of seen the look on her face.

It was priceless!!!!!

I wouldn't spend any of the money just yet. So far you have BOTH received a refund using the SAME child as a dependent. Since that is not legally allowed, ONE of you will have to pay the IRS back. The IRS does NOT have to abide by STATE laws or any state level court order. Federal law states the CUSTODIAL parent gets the exemption. So guess which one of you will be getting a bill from the IRS. Your only recourse is to go back to family court and get the money to pay the IRS back from HER, since she violated the court order.

[LdiJ]

Originally Posted by ceara19

I wouldn't spend any of the money just yet. So far you have BOTH received a refund using the SAME child as a dependent. Since that is not legally allowed, ONE of you will have to pay the IRS back. The IRS does NOT have to abide by STATE laws or any state level court order. Federal law states the CUSTODIAL parent gets the exemption. So guess which one of you will be getting a bill from the IRS. Your only recourse is to go back to family court and get the money to pay the IRS back from HER, since she violated the court order.

Its not guaranteed that the IRS won't honor the court order. They don't have to, particularly due to the new change in the laws.....however, we won't know until later in the year whether or not the IRS is going to continue to honor court orders or follow the letter of the law.

I agree that he shouldn't spend the money until he knows for sure which way the IRS will rule in his case.