Tax Refund

[mcwjjm]

What is the name of your state? Ohio. Is it true that regardless what is agreed or documented in the custody decree that the custodial parent is entitled to the tax benefit for the child? You're basically at the mercy of the custodial parent to adhere to whatever arrangments were made but in the end they can do whatever they wish.

 

[betterthanher]

What is the name of your state? Ohio. Is it true that regardless what is agreed or documented in the custody decree that the custodial parent is entitled to the tax benefit for the child? You're basically at the mercy of the custodial parent to adhere to whatever arrangments were made but in the end they can do whatever they wish.

No, it's not true. The IRS is currently honoring court orders. If your court order states you are to claim the tax credit for the children, then you are to claim it. What you should do is file your taxes and claim the tax credit. The IRS will then flag both returns. If it's your year to claim the children, send them a copy of the court order (highlighting the provision regarding the credit). Your moronic ex will then have to re-pay the credit, plus possible penalties and interest.

 

[NotSoNew]

also if the CP refuses to sign the form 8332 giving you the right to claim you can file contempt charges and ask the judge to force the CP to sign the form.

 

[betterthanher]

also if the CP refuses to sign the form 8332 giving you the right to claim you can file contempt charges and ask the judge to force the CP to sign the form.

Actually, the OP doesn't need to take that action. The IRS will take care of it and go by the court order. She will have to re-pay the credit, plus interest and penalties (that's better than filing contempt).

 

[NotSoNew]

Actually, the OP doesn't need to take that action. The IRS will take care of it and go by the court order. She will have to re-pay the credit, plus interest and penalties (that's better than filing contempt).

I thought LdiJ said that they wouldnt accept the court order this year either, but I could be mistaken. I will leave that to LdiJ to answer.

 

[Ohiogal]

I thought LdiJ said that they wouldnt accept the court order this year either, but I could be mistaken. I will leave that to LdiJ to answer.

Either way the courts in Ohio will step in with a nice big contempt action against the CP who refuses to allow the NCP to claim the credit according to the custody order. And I do not see the courts just saying oh you made a mistake. They would probably be less than polite about such a thing.

 

[mcwjjm]

Thank you so much.

 

[LdiJ]

Actually, the OP doesn't need to take that action. The IRS will take care of it and go by the court order. She will have to re-pay the credit, plus interest and penalties (that's better than filing contempt).

We THINK that the IRS will honor the order. Unfortunately, we can't be 100% certain of that. So far the IRS has been honoring court orders, but the law DID change in late December to state that court orders were no longer usable, that the form 8332 (or its equivalent) had to be signed. Therefore its possible that the IRS will handle things differently this year. We won't know for certain until late in the year when the IRS starts investigating duplicate claims.

However I agree 100% that the OP should go ahead and claim the child if its their year to do so. Should the IRS eventually decide against the OP, the OP has remedies at the state court level.

 

[betterthanher]

We THINK that the IRS will honor the order. Unfortunately, we can't be 100% certain of that. So far the IRS has been honoring court orders, but the law DID change in late December to state that court orders were no longer usable, that the form 8332 (or its equivalent) had to be signed. Therefore its possible that the IRS will handle things differently this year. We won't know for certain until late in the year when the IRS starts investigating duplicate claims.

Aaahhh. I was not aware of the December change that you spoke of. I just remember you stating that as of now, they still are. Now, it's just a wait-and-see.

I guess these court orders are really causing them headaches.

 

[LdiJ]

Aaahhh. I was not aware of the December change that you spoke of. I just remember you stating that as of now, they still are. Now, it's just a wait-and-see.

I guess these court orders are really causing them headaches.

Yep...my understanding is that the feds want to completely get rid of the form 8332 as well. That they want to strictly follow the tax code and regs.
The general attitude is that if state court judge want parents to share the benefits of the tax exemption, then its up to the state courts to take that into consideration in child support calculations, rather than putting the burden and cost on the IRS to police the matter.

 

[betterthanher]

Yep...my understanding is that the feds want to completely get rid of the form 8332 as well. That they want to strictly follow the tax code and regs.
The general attitude is that if state court judge want parents to share the benefits of the tax exemption, then its up to the state courts to take that into consideration in child support calculations, rather than putting the burden and cost on the IRS to police the matter.

I can't blame the IRS leaving it up to the courts. I can only imagine the hell they go through each and every year. At least putting it back on the courts (although would add more backlog), when the offending parent is found in contempt, it'll cost 'em AT LEAST $3100/child.

My only beef with the IRS is the presumption that the CP contributes over 50% of the support.

 

[NCP Dad in TN]

My only beef with the IRS is the presumption that the CP contributes over 50% of the support.

Yup. I've often wondered exactly how much my ex contributes to supporting our children... let's see... I pay her 41% of my income in CS... but I have the kids 46% of the year (every other week). While the kids are with ME, I take care of them with what is left over from my paycheck after paying my Ex her CS.... when the kids are with HER, she uses food stamps to pay for the food, state insurance to pay for the boo boos (even though I'm providing expensive heath insurance through my employer).... with what the gov't does not provide for her, she uses the child support to pick up the difference... rent, clothes, etc... but it's still money from MY wallet... NOT money SHE earned.... unless you consider child support money she earned because she has a uterus and I do not.

Woke up ticked off this morning, sorry.

 

[mcwjjm]

Thank you LDiJ. Just to clarify.

>>However I agree 100% that the OP should go ahead and claim the child if its their year to do so. Should the IRS eventually decide against the OP, the OP has remedies at the state court level.<<

We on seperated in November '05 so there never was an issue with who claimed the kids. Last year I claimed one and as usual turned over th entire benefit from that exemption to the mother / now CP. In early January f this year she asked me to claim both childen, I said I would split the benefit/refund 50-50 and she didn't complain but after I filed she changed her mind and now feels she's entitled to the entire refund or at least 70% of it. She has contacted the IRS to contest my return.

If you don't mind could you give me your opinion on my post in Consumer Bankruptcy. Based on youir comment about recourse on the state level who would take precedence in my case?https://forum.freeadvice.com/showthread.php?t=308902

Thanks!

 

[LdiJ]

Thank you LDiJ. Just to clarify.

>>However I agree 100% that the OP should go ahead and claim the child if its their year to do so. Should the IRS eventually decide against the OP, the OP has remedies at the state court level.<<

We on seperated in November '05 so there never was an issue with who claimed the kids. Last year I claimed one and as usual turned over th entire benefit from that exemption to the mother / now CP. In early January f this year she asked me to claim both childen, I said I would split the benefit/refund 50-50 and she didn't complain but after I filed she changed her mind and now feels she's entitled to the entire refund or at least 70% of it. She has contacted the IRS to contest my return.

If you don't mind could you give me your opinion on my post in Consumer Bankruptcy. Based on youir comment about recourse on the state level who would take precedence in my case?https://forum.freeadvice.com/showthread.php?t=308902

Thanks!

Like I told you on the other thread.....bank that refund and don't spend it until you are sure how things are going to play out.