Tax Question, what would you do?

[Raisingmaddy]

What is the name of your state? WA

This isn't a child support question, but I wasn't sure where else to post it so here goes...

My ex and I have Joint custody, but I have physical, we have three children. Our divorce decree states that every even numbered year my ex claims two children for tax purposes, and I claim one, odd numbered years I claim two and he claims one.

All three children have lived with me full time, when my ex filed his taxes he claimed the Earned income credit for the children he claimed. I did not know until this year that he is not entitled to claim that, but that it goes to the parent that the children live with. I just want to add that child support was JUST awarded and he did not pay ANY child support for the year he claimed the EIC.

I have spoken with my tax advisor and he says that I can amend my tax return to claim the EIC, the only thing I am worried about is if I do that, he will have to pay the IRS back the money he was not entitled to, needless to say, he will be irrate.

What would you do?What is the name of your state?

 

[GrowUp!]

What is the name of your state? WA

This isn't a child support question, but I wasn't sure where else to post it so here goes...

My ex and I have Joint custody, but I have physical, we have three children. Our divorce decree states that every even numbered year my ex claims two children for tax purposes, and I claim one, odd numbered years I claim two and he claims one.

All three children have lived with me full time, when my ex filed his taxes he claimed the Earned income credit for the children he claimed. I did not know until this year that he is not entitled to claim that, but that it goes to the parent that the children live with. I just want to add that child support was JUST awarded and he did not pay ANY child support for the year he claimed the EIC.

I have spoken with my tax advisor and he says that I can amend my tax return to claim the EIC, the only thing I am worried about is if I do that, he will have to pay the IRS back the money he was not entitled to, needless to say, he will be irrate.

What would you do?What is the name of your state?

If he is claiming something he's not entitled to and you are, then amend your return and claim what you're supposed to. Then let the IRS figure it out because it'll flag both returns. Many people pull this crap every year thinking it's a "who files first, gets it" contest. Those thinking that and are not entitled to what they are trying to get find out by paying the price.

That being a steep IRS penalty. If he doesn't like it, too bad. He'll think differently next time.

 

[LdiJ]

If he is claiming something he's not entitled to and you are, then amend your return and claim what you're supposed to. Then let the IRS figure it out because it'll flag both returns. Many people pull this crap every year thinking it's a "who files first, gets it" contest. Those thinking that and are not entitled to what they are trying to get find out by paying the price.

That being a steep IRS penalty. If he doesn't like it, too bad. He'll think differently next time.

Example: If he falls within maximum EIC range for two kids, its about 4700.00 of EIC....if he claimed it fraudulently, that means at least 6k with interest and penalties, and maybe more. On top of that, he won't be able to claim EIC for a minimum of two further tax years for ANY children (even ones for whom he would normally qualify), and the IRS can impose that for up to 10 years.

So lets say that the IRS imposes it for 10 years, and he and a new wife have two more kids...he won't be able to claim EIC for those kids for a great portion of their childhood.

With EIC being close to 5k for two kids now...and increases a bit every year...that means that in 10 years someone can cost themselves somewhere around 56k (ten years of EIC plus the backback) just for taking EIC fraudulently ONCE.

I understand why people do it....almost 5k is a heck of a windfall for most people. Low income people would normally never see 5k all at once without EIC. Its incredibly tempting to cheat...but cheating is about as dumb as it gets.

The IRS has hired 15,000 new auditors whose job is specifically to help stop EIC fraud...among other things.