Withholding

[tuffbrk]

What is the name of your state? NJ

Divorce hopefully to be final on Friday. My ? is - what should I set withholding to? Currently, since I file Married, filing separately, claiming myself and one other, I have withholdings as Single, 01. I do not claim HOH as STBX in residence.

So - I've been granted the exemption of the child, STBX to be moving out which I think then entitles me to claim HOH for 2008? Do I leave my withholdings as Single? Do I up it to 02 exemptions, as opposed to 01?

Not sure how to establish HOH other than when filing? Is that correct?

Any advice would be appreciated!

[TinkerBelleLuvr]

What a X-mas present, huh?

I've sent people to this IRS website. Since you probably have deductions like children, mortages, etc., this is a good place to start.
http://www.irs.gov/individuals/article/0,,id=96196,00.html

[abezon]

To file HH for 2007, you must pay over half the cost of maintaining your home for the year, which was the home of you & your qualifying child or qualifying relative for over half the year, & you must be unmarried as of 12/31/2007.

You have said nothing about how much each contributes to the household bills. (The costs of "maintaining the home" include the rent/mortgage, insurance, utilities, repairs, & the cost of food consumed in the home.) You'll need to sit down & determine whether you paid over half the cost of the home.

I shall assume you did pay over half the cost of maintaining the home. You said you got the child's exemption, but that still doesn't mean you can file HH. Who gets custody of the child? Your child is a qualifying child of both you & your spouse in 2007, and only one of you will get to file HH. If you both try to file HH using the same qualifying child, the IRS will apply the tie-breaker rules, & assign the QC (for the HH test) to the parent with whom the child lived more during 2007. The situation could be that one person paid over half the cost of maintaining the home, but the other person had custody longer, and therefore no one can file HH in 2007.

[TinkerBelleLuvr]

Wait ... wait ...

Is the divorce final for this year? Abezon, she gets HOH cuz she's paid 100% of the bills ... (long sorry saga.) And this is true as long as Friday is a GOOD day.

[tuffbrk]

Oh wait!! I'm so excited! I could actually claim HOH this year?! I had thought I read that the STBX had to vacate the premises for me to claim HOH? So I was thinking that since I'm going to be choking on alimony that I could change my withholding status to get a bit back more in my paycheck. Do you think I can do that or stick with the Single, 01 withholding rate?

I'll check out that link.

Thanks much GinnyJ and Abezon!

[tuffbrk]

Originally Posted by Ginny J

What a X-mas present, huh?

...LOL! and after 3 torturous years - absolutely a good Christmas present!! Now if I can get him out of the house prior to his proposed 02-15, that would be the BEST Christmas present ever!

I don't even remember what it's like to sit in a living room and watch TV with both of my kids anymore!

[TinkerBelleLuvr]

TB - the divorce must be FINAL - with the judge's signature BEFORE 1/1/2008. Make your lawyer lawyer-up and MAKE it happen.

See - if he stays AFTER the divorce, then ya'll are just shacking up

[tuffbrk]

The judge is thoroughly annoyed...and it's about time if you ask me! He is out and out determined that we be divorced this year.

STBX just asked if it's ok for him to schedule my 14 yo for a teeth cleaning with him this Friday. Geez Louise! He already forgot we have court!

I ran the calculator. I'm one of the alternative minimum deal folks that most likely are going to be hard hit this year. It's showing a return of approximately $1,884 using rough numbers. How is that even possible when I'll be claiming HOH vs Married, filing separately? Thinking my numbers might be off....

[LdiJ]

Originally Posted by tuffbrk

The judge is thoroughly annoyed...and it's about time if you ask me! He is out and out determined that we be divorced this year.

STBX just asked if it's ok for him to schedule my 14 yo for a teeth cleaning with him this Friday. Geez Louise! He already forgot we have court!

I ran the calculator. I'm one of the alternative minimum deal folks that most likely are going to be hard hit this year. It's showing a return of approximately $1,884 using rough numbers. How is that even possible when I'll be claiming HOH vs Married, filing separately? Thinking my numbers might be off....

tuffbrk...email me. You have the email. I will give you my phone number at work, and you can call me and I will run the numbers for you on actual 2007 software.

Anyway, for 2008 forward you are going to want to do things in a little bit non standard manner. The alimony that you will be paying is tax deductible for you, and taxable income for him. Therefore, that will have a huge impact.

[tuffbrk]

Thanks LdiJ! Will do so....