Child support and taxes

[masopa]

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

Court order reads that we are to alternate years for the purpose of claiming son on our taxes. At our child support hearing in October, my son's mother said that she had brought none of the required paperwork because she does not file taxes - she worked at a company that pays cash only, apparently (which seems shady to me, but no one raised an eyebrow in court, so...?)

However, she also announced in court that she quit her job two months earlier because she was pregnant and didn't want to work. She was still ordered to pay child support, of which she hasn't paid a cent to this day.

My questions are:
1. If she doesn't file a tax return anyway can I claim my son on my return even though it's her year? I have placement 85% of the year, over 90% in 2009, so she would need the IRS form from me signing off on my claiming my son this year anyway. Not sure how it works.

2. So, by my understanding, she has no income to claim on taxes and therefore could not even file a joint return with her husband - is that how it works? Would it be possible for her husband to claim my son on his return?

Thanks in advance.

 

[LdiJ]

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

Court order reads that we are to alternate years for the purpose of claiming son on our taxes. At our child support hearing in October, my son's mother said that she had brought none of the required paperwork because she does not file taxes - she worked at a company that pays cash only, apparently (which seems shady to me, but no one raised an eyebrow in court, so...?)

However, she also announced in court that she quit her job two months earlier because she was pregnant and didn't want to work. She was still ordered to pay child support, of which she hasn't paid a cent to this day.

My questions are:
1. If she doesn't file a tax return anyway can I claim my son on my return even though it's her year? I have placement 85% of the year, over 90% in 2009, so she would need the IRS form from me signing off on my claiming my son this year anyway. Not sure how it works.

2. So, by my understanding, she has no income to claim on taxes and therefore could not even file a joint return with her husband - is that how it works? Would it be possible for her husband to claim my son on his return?

Thanks in advance.

She is still supposed to be filing a tax return even if she is paid in cash. She owes tax on that income.

The biggest problem that you would face, is that many people who don't file tax returns eventually are forced into filing, and often forced into filing for 3-10 back years. Many people who are paid cash end up getting 1099s for the year(s) in question which ends up forcing them to file, at least eventually, and there are a whole host of other reasons why they eventually end up filing.

Then, if you filed on her years, it could come back to bite you in the butt, and you might end up having to amend prior returns and pay back the IRS, or might get ordered to reimburse her the refunds she should have received, or the excess tax she had to pay.

However, at the same time, if she doesn't file at all for those years, ever, neither the courts nor the IRS is going to ding you for claiming the children rather than leaving them unclaimed. The IRS wouldn't ding you anyway because you are the custodial parent and are the one legally allowed to claim them under the tax code, but the state court is the one that has the potential to ding someone.

Basically, you need to think it through and decide.

 

[masopa]

I see. I hadn't considered that aspect of it. Thanks a lot for the help!