Tax question & EIC (Custody)

[2Mistakes]

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

Hello all!

I have a quick question regarding claiming the kids on taxes. I've been reading different things here in different threads, and I don't think I fully understand how it all works. Maybe I've been doing it wrong for several years now.....


Anyways, 3 children: K, S, & C. Joint legal custody. I have sole physical. Our order states that every year I claim K, she claims S, and we alternate C each year.

This year, she claims S & C, but I think I'm learning that since they don't live with her, she can't claim them for EIC purposes. Is that true?

If so, can I claim them for EIC if she is claiming them on her taxes? Does that even make sense? I know we can't both claim the kids, and it is her year, but how does EIC work?

 

[Isis1]

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

Hello all!

I have a quick question regarding claiming the kids on taxes. I've been reading different things here in different threads, and I don't think I fully understand how it all works. Maybe I've been doing it wrong for several years now.....


Anyways, 3 children: K, S, & C. Joint legal custody. I have sole physical. Our order states that every year I claim K, she claims S, and we alternate C each year.

This year, she claims S & C, but I think I'm learning that since they don't live with her, she can't claim them for EIC purposes. Is that true?

If so, can I claim them for EIC if she is claiming them on her taxes? Does that even make sense? I know we can't both claim the kids, and it is her year, but how does EIC work?

uh, i think either parent can claim EIC, it's the daycare credit the NCP can never claim. i'll sit and wait for LD to clarify.

 

[TinkerBelleLuvr]

Regardless of which parent claims the child, ONLY the CUSTODIAL parent can claim EIC and Child and Dependent Care Credit. With that said, the parent who claims the child is the one who gets the Child Tax Credit, Additional Child Tax Credit and the College Credit (name is failing me at the moment.)

So, in this case, yes, you could claim the children on EIC, if you qualify.

 

[wileybunch]

I recently asked LdiJ similar questions for a family member.

This year, she claims S & C, but I think I'm learning that since they don't live with her, she can't claim them for EIC purposes. Is that true?

That's correct, she cannot claim EIC on the kids because she is not a custodial parent.

.. can I claim them for EIC if she is claiming them on her taxes?

Yes. As the Custodial Parent, you can claim them just on EIC only and she can claim the tax exemption and the child tax credit.

 

[wileybunch]

Regardless of which parent claims the child, ONLY the CUSTODIAL parent can claim EIC and Child and Dependent Care Credit. With that said, the parent who claims the child is the one who gets the Child Tax Credit, Additional Child Tax Credit and the College Credit (name is failing me at the moment.)

So, in this case, yes, you could claim the children on EIC, if you qualify.

Hope credit?

 

[AkersTile]

Hope credit?

Yup thats it.

 

[2Mistakes]

Regardless of which parent claims the child, ONLY the CUSTODIAL parent can claim EIC and Child and Dependent Care Credit. With that said, the parent who claims the child is the one who gets the Child Tax Credit, Additional Child Tax Credit and the College Credit (name is failing me at the moment.)

So, in this case, yes, you could claim the children on EIC, if you qualify.

Lord, I hope I don't sound too stupid when talking about this.

I do my own taxes. I won't claim them on the first part (where it asks for dep.) But I can claim them for the EIC-only portion, correct?

So what happens when she claims them as well? I already know that in order to get a bigger refund, she is going to claim for EIC and answer that they lived with her. She does it every year for the kid(s) she gets to claim that year.

Up until now, I have just always left off completely whichever child(ren) she was claiming. I didn't realize that I could have been claiming them for EIC purposes.

Should I let her know that I found out that I can still claim them for EIC and that I will be doing so, so that she doesn't?

 

[TinkerBelleLuvr]

Hope credit?

That's for the first two years of college. Alrighty, looked it up:

Hope Credit for the first two years of college.
Lifetime Learning Credit for the rest of your upper level learning life.

There is also the Tuition and Fees Credit.

 

[LdiJ]

Hope credit?

Any of the education credits or deductions go with the child's exemption.

 

[TinkerBelleLuvr]

Lord, I hope I don't sound too stupid when talking about this.

I do my own taxes. I won't claim them on the first part (where it asks for dep.) But I can claim them for the EIC-only portion, correct?

So what happens when she claims them as well? I already know that in order to get a bigger refund, she is going to claim for EIC and answer that they lived with her. She does it every year for the kid(s) she gets to claim that year.

Up until now, I have just always left off completely whichever child(ren) she was claiming. I didn't realize that I could have been claiming them for EIC purposes.

Should I let her know that I found out that I can still claim them for EIC and that I will be doing so, so that she doesn't?

If she claims them for EIC, then you file a paper return. It'll delay your return a few weeks. Both parents will get their refund and later in the year, the IRS will question both parents. The one with the "correct" answer keeps the deduction. The other one (in this case the NCP) would have to repay the lovely government.

 

[2Mistakes]

If she claims them for EIC, then you file a paper return. It'll delay your return a few weeks. Both parents will get their refund and later in the year, the IRS will question both parents. The one with the "correct" answer keeps the deduction. The other one (in this case the NCP) would have to repay the lovely government.

Wow, what a bonus! LOL

So if she has to repay the government, will there be interest and penalities as well?

Could I now amend prior years claiming EIC for all 3 kids (in the years I qualified?) If so, how many years can I go back and amend? Am I going to cause her a heap of trouble for those years as well if she claimed EIC for the kids even though they didn't live with her?

Oh, and hello to you all. Long time no talk. Life has been crazy. I think some people did some name-changing while I was away.

 

[wileybunch]

Yes, you can file an amended return for those years to claim the EIC.

 

[2Mistakes]

Yes, you can file an amended return for those years to claim the EIC.

Hello Wiley!

Do you know how many years I can go back? The only years I need to amend are tax years 2008 and 2006.

 

[LdiJ]

Wow, what a bonus! LOL

So if she has to repay the government, will there be interest and penalities as well?

Could I now amend prior years claiming EIC for all 3 kids (in the years I qualified?) If so, how many years can I go back and amend? Am I going to cause her a heap of trouble for those years as well if she claimed EIC for the kids even though they didn't live with her?

Oh, and hello to you all. Long time no talk. Life has been crazy. I think some people did some name-changing while I was away.

Until 2009 EIC only applied for 2 children. For 2009 it applies for 3.

You can still amend 2006, 2007 and 2008.

Yes, it would cause her a heap of trouble if she claimed EIC for any year that you amend your returns and claim it...and yes, there will be interest and penalites as well, and the penalities could be quite severe.

 

[TinkerBelleLuvr]

Yes, you can amend prior returns if it will benefit you. I believe you can go back and do 2006-2008. 2006 would have to be completed PRIOR to 04/15 - otherwise that one falls off.

Now, would you not have qualified with stepdaughter and the youngest child?