Splitting an exemption is not illegal if you follow the proper rules. Learn how here.
Sometimes when I’m working with a divorced couple, it seems that the most beneficial way to prepare the tax return is to split the exemption for their child. When I say that, they always tell me, “But I heard that was against the law!” No—that’s not exactly true. But let me tell you, there is a right way and a wrong way to do it. If you follow the rules and do it correctly, it’s not only legal, it’s the right thing to do. Warning: if you don’t follow the rules, you could be breaking the law. I give a lot of advice to do-it-yourselfers, but if you’re planning to split an exemption, I recommend you go to a professional for it. (And if she tells you it can’t be done—hire somebody who knows what she’s talking about.)
With most divorced couples (I’m including here couples who were never married but have split apart and have lived apart for at least 6 months of the past tax year), one parent (usually the mother) has custody and the other parent (usually the father) has visitation rights. A lot of couples say that they have “joint” custody – for example, the kids stay with the dad every Wednesday night and every other weekend and with the mom the rest of the time. If you count the days, under IRS rules, the mother wins on the custody status. According to the IRS, wherever the child spends the most nights is where the child lives—if you’ve got one of those every other weekend and every Wednesday night agreements, the IRS doesn’t count that as being equal.
In my example, I’m saying the child lives with the mother. In IRS lingo, the mother in this example is the “custodial” parent and the father is the “non-custodial” parent.
In this case, the mom has all the power—she’s the custodial parent. The mom can claim all the benefits of having a child on the tax return. Those benefits include:
- Head of Household filing status-a lower tax rate
- Childcare tax credit-credit for money you spend on daycare
- Childcare exclusion-so you don’t get taxed if your company pays for daycare
- Earned Income Credit-this can be worth up to $3,094 for one child
- Exemption for the child-a deduction of $3,600 off your income
- Child Tax Credit-worth up to $1,000
When tax professionals tell you that you can’t split exemptions, what they’re reading is the section of Pub. 17 (that’s like our Bible for tax stuff) that says these things always go to the same person. What they’re not reading is page 31—the part that tells you about the special rules for divorced or separated parents. Under the special rules section, it says that the mom (our custodial parent) can release the exemption for the child to the father (the non-custodial parent). This lets him claim the exemption and the child tax credit on his return, while the mom keeps the head of household status, the dependent care credit, and the EIC on her return.
Why would anyone want to do this? Lots of reasons! Number one, of course, is to maximize the amount of money you get back from the government. A lot of times, after a divorce, the mom doesn’t have a very high taxable income. Remember, child support isn’t taxable. The dad has lost a lot of his deductions so his tax bill could be pretty high. He’d probably never qualify for an earned income credit anyway, but the $1000 child tax credit would really help him out. If the mom’s taxable income is really low, she wouldn’t even qualify for the $1000 child tax credit. In some cases she could give it away without it hurting her at all. Or maybe the father is behind on child support, she could negotiate: if he catches up on the child support by December 31st, she’ll sign the form to allow the father to claim the child’s exemption. Remember, when claiming the exemption for a child, the custodial parent has all the power. If the dad claims the child without permission, the mom can just file her own return fully claiming the child and sending the dad’s return to the IRS audit division. You don’t want that to happen.
Splitting an exemption isn’t the best choice for everybody. You have to look at both returns and see if it’s going to work. It also helps to be on good terms with the ex—this certainly doesn’t work well with people who are fighting.
There are a lot of other rules that I haven’t even touched. (That Pub. 17 book is 295 pages long!) But if you are divorced or separated, you need to know that splitting an exemption might be an option for you to use on your income tax return.
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Here are some links that might help:
EIC questions of any kind: EITC Assistant
How to find free tax preparers: Free Tax Help
How to find your local IRS office: Find an IRS Office
Hi Maria,
So it sounds to me like you’re going to be the custodial parent. That means that you get all the benefits of claiming the head of household filing status, not your ex. Your income is too high for EIC. If your ex is clearing $40,000 then EIC won’t help him either–but even if it could, he can’t claim it because he’s not the custodial parent, you are!
So, if he’s making $40,000, that puts him in the 25% tax bracket. (Maybe even 15% with his deductions, but I’ll use 25%, it’s a better number for him.)
At the 25% tax bracket, and claiming one child as an exemption, he would reduce his taxable income by $3,800. 3800 times 25% is 950. Add to that the $1000 that she should get for the child tax credit and he gets $1900. That’s it.
If his income tax bracket is actually 15%, then we’re talking $570 plus the $1000 child tax credit.
So the question here is–what’s it worth to him? What’s it worth to you?
At your income, because you get the head of household filing status, you would also be in the 25% tax bracket, so your loss would be equal to his gain.
I don’t know what the right answer is for you, but at least you’re armed with the numbers.
Divorcing now….2 kids (4 and 6). I will have primary custody; Dad will have every other w/e and 1 weeknight. I think I should claim both as exemptions…he wants one. I may significantly more than he does and I think it would make more financial sense for me to have the exemptions. He says his accountant says it will make a ‘big deal’ for him to get at least one. I will earn $95K plus; he is self-employed and seems he claims income of about $40K. Advice?
Thanks!
Hi Mary R,
The court order allows your brother to claim the exemption–it is against the law for him to receive EIC. That’s why he only got half of his refund. It sounds like his ex did it right and he got the exemption and the child tax credit, but no EIC. EIC is only for the custodial parent, which is his ex. Sorry.
(I removed your last name for privacy.)
Hi Brandi,
I think what the IRS meant was for you to print out your tax return claiming your daughter and mail that in. That’s what they want, your 1040 tax return.
Hi Lily,
I bet you needed this answer back on April 15th, sorry I’m so far behind. Your mom can claim your little sisters for EIC, but since there is a court order for the father to claim one on his tax return he can claim her for the exemption. The father can not, I repeat, he CANNOT claim EIC. If he did, your mom can fight that.
Hello Dean,
Your step son lived with you for the entire year. Your wife moved out in April, so you were apart for the last 6 months of the year.
The child is yours to claim. You win hands down.
Gee Guber, I should have you as a guest blogger!
Hey Guber,
Option 4 is illegal.
Some preparers would say that option 3 is also not workable, but I think option 3 is good for your case. For many folks, claiming head of household at the same address is a red flag, for you I think it’s a workable solution to your situation and I think you’d win if it came to audit. I have tax friends who say you can never have two HOH at the same address. I disagree, I think your situation is a good example. While I think you’d win that argument for 2 HOHs, it does have a higher chance of being audited. So the question is–do you have any other issues you’d rather not have the IRS look at?
Option 2 is safe in case you’re worried about an audit.
Hi Monica,
You want to know how to tell if a child was claimed by looking at a tax return. First, as a tax professional, I tell by the notice the IRS sends me when I e-file a tax return. The IRS notice will say “reject” and then there will be a code. That’s how I identify that a child was rejected.
If you’re looking at someone’s tax return, you would look at the first page where it lists the dependents. It’s up near the top, but below the names of people filing the tax return.
If you’re checking to see if someone claimed a child for EIC but not for the exemption, then you would look at the EIC form, the child would be listed there.
But–this is important. If the birth mom really didn’t claim your step child, and you were rejected, then somebody is using your stepchild’s social and that’s fraud. You and the stepmom should work together on this to make sure your mutual child is protected. This is a big deal if she’s telling you the truth, you’ll both want to protect the child.
Hi Mell,
Your ex says its the law to give him half of what you get on your tax return for your children? He’s lying. End of story.
Hi Lisa,
Your eldest child will be going to college and your ex claims that exemption–that’s a tough one. The American Opportunity Credit (the college tax credit) goes to the person claiming the dependency exemption.
But, your ex isn’t paying for college. Now, here’s a thing that may help you–many colleges won’t give the 1098T (that’s the form you need to claim the tax credit) to the parents–they will only give it to the student–so—you may have to involve your child.
Also, many divorce decrees end at 18–check your paperwork, you may have something on your side there also.
If he’s allowed to claim your child while in college, you may need to do some re-negotiating with the ex. Maybe let him claim the younger child so you get the college tax credit. But do check the divorce decree to double check what he’s entitled to. Good luck.
I have been divorced for ten years. My ex and I have two children. our divorce agreement states that my ex can claim my eldest child as a dependent on his tax return and I claim my youngest. My eldest child is going off to college. My ex is unwilling to help pay for tuition. Is he still eligible to claim my son on his tax return and also receive the college tax credit? I am the custodial parent.
Hi Max,
You want to know what happens when the court agreement splits custody and each parent is supposed to claim one child but later one parent claims two. What happens.
The question I have for you is: who has physical custody of the children? Court documents say all sorts of things, but what’s really happening? The IRS will try to determine who really has the children and resolve the case from there.
Generally, the parent that the children live with will be allowed to be claimed for EIC and head of household purposes. If the court decree allows the none-cutodial parent to claim an exemption, then the custodial parent should sign a form 8332 allowing for that. If a parent is negligent in providing the document, the injured parent may go to court.
ok i have my daughter way more then her father does i pay for everything she lives with me i take her to the doctors im her soul provider i the one that takes care of her ….but…..her father claimed her with out my permession i called the irs to see what i should do the told me to print a form out from online and send it in i want to know what is that form called and where can i find it
I HAVE A QUESTION MY MOTHER FILED CHILD SUPPORT FOR MY LITTLE SISTERS THE FATHER GOT A LAWYER AND SO DID WE. HE REALLY FOUGHT TO CLAIM ONE OF THE GIRLS FOR TAXES THROUGH COURT A JOINT CUSTODY WAS MADE BUT MY 2 SISTERS LIVE WITH MY MOTHER AND THE COURT GRANTED HIM ONE CHILD TO CLAIM. MY MOTHER HAS A PART TIME JOB HE ONLY SEES MY SISTER SOMETIMES. IT SUPPOSED TO BE EVERY SUNDAY. ALSO HE DOES NOT GIVE MY MOTHER MONTHLY CHILD SUPPORT. DOES HE STILL HAVE THE RIGHT TO CLAIM MY SISTER EVEN IF IT WAS AN AGREEMENT THROUGH COURT FOR HIM TO CLAIM MY SISTER EVEN THOUGH HE DOES NOT GIVE CHILD SUPPORT TO MY MOTHER ONLY WHEN HE FEELS LIKE IT. CAN MY MOTHER CLAIM HER?PLEASE REPLY BACK. THANK YOU
Hello.
My wife left in April 2012. She left her son to live with me (my step son) as i lived close to his school. He lived with me the entire year, he is 17. I claimed him as a dependent on my taxes. I use Turbo Tax and answered all of the questions, and they indicated that i could do this. She states she has sought legal advice, and that i had no right to claim him.
We filed for Divorce in January 2013 but are still legally married.
Actually, I won’t shut up, because I can answer my own question.
(1) The whole scheme with alimony falls flat on its face once you stay under one roof, nothing can be declared alimony period. There is an article out there by Fineberg PC, “A household is not a home ‘not members of the same household’…” but it seems that relies on a 1984
(2) Next, then, for filing HoH, one could split the kids in the middle so both parents could file as HoH each for one child. For instance, dad, with the higher income, that is beyond child tax credit, could book the 17 year old daughter (based on the daughter having stayed one more night at dad’s house), since 17 years anyway disqualifies for child tax credit. Mom would take the younger son, and get the child tax credit.
(3) This idea of separating exemptions from child tax credit probably won’t fly, will it?
One final point of clarification: when I said paying back the car loan, I misspoke. It’s good paying back the expensive loan, but most people seem to be using the tax refunds to continue their addiction to car loans, e.g., using it as down payment for another one of those. Sorry for diluting the tax consideration with my soap box. Though I find it amazing how small the tax savings of such advanced tricks are when compared to the ability to save in daily life by avoiding expensive loans.
OK, now I shut up.
PS: oops, my apologies!! I’m sorry I got your name wrong Jan.
Hi Roberta, here is some puzzling scenario you may not have heard about, grist for the mill:
– Parents got divorced with final decree in June 2012.
– Decree was a “rubber stamp” of an uncontested settlement agreement.
– For the sake of the children, they continue both residing in the family home
(They have been sleeping in separate rooms already since 2011.)
– The implementation of the amicable decree is taking its own pace
– i.e., the quit claim deed to sign over the home to her was executed only in 2013
– The custody / parenting plan aims at a true 50/50 shard custody
– alternate weeks, not a Wednesday-and-every-other-weekend type situation.
– Their separation agreement allows him the exemptions just in case
– Rehabilitative maintenance is agreed
As for the basic tax situation
– They fully collaborate and agree on tax questions
– there are 2 biologic children of both (underage, no-one else claims them)
– he is above the child tax credit phase out
– he files schedule A
– she would claim standard deduction
– neither would be eligible for earned income credit or dependent care credit, etc.
So, according to the rules,
– They are divorced because a final decree is in hand.
– The divorce was not a fake with the intent to avoid taxes and later remarry.
– Since both parents lived under the same roof, both have the same number of nights for 2012
– The tie-breaker “highest AGI” makes the him the custodial parent
Now therefore, they figure it to the maximum common benefit if
– he claims head of household status
– he can execute Form 8332 to her to give her the exemption
Now, trying 5 models, they find:
#0: he is HOH takes exemption, child tax credit is lost (THIS IS THE DEFAULT BASELINE CHOICE)
#1: she is HOH takes exemption, higher standard deduction, child tax credit
– they would claim this based on the house being hers and he being absent for some months
– so as to cause the nights-count test to fall on her side.
#2: he is HOH but signs exemption and child tax credit over to her
#3: they split the kids, each gets one child fully as HOH and exemption and credit (if they can)
#4: he is HOH takes the exemption but she takes the child tax credit
The results of their analysis:
#1 would cost them ~$2,000 morel
#2 would save them ~$1,000
#3 would save them ~$1,500
#4 would save them ~$2,000
My conclusions so far are firstly that in the big picture, the amount saved by any of the advanced tricks is possibly not worth the headache and hassles and risks of an IRS audit. I think this is particularly true is they were “normal” people who tend to consume most of their tax refunds on discretionary fun or who lose their money by paying back expensive loans (e.g., car loans).
Still, do you want to comment on any of these edge-case explorations? Especially the 3 main odd points:
(1) being divorced but staying under one roof so kids have a fairly normal life
(2) splitting the kids in the middle (a very possible scenario for older kids, say, daughter is more attached to dad and son more attached to mom.)
(3) separating exemption from child tax credit (they are different boxes on the 1040 form but Form 8332 only speaks about exemption and implying the child tax credit would go with it.
And how likely do you see any of this triggering an IRS audit?
– both parents would name the children in 1040 box 6c — that alone might be the audit trigger.
– so this might rule out the trick of one taking the exemption and the other taking the child tax credit
– but will filing status HoH suffice without mentioning any of the dependents needed to file HoH on the 1040?
long story short…. 2012 tax return my husband was suppose to claim my step daughter. we had agreed w/ her mom that we wud alternate years to make it easy and fiar. however, when i went to file yesterday the child ssn was already used. her mother is adamnt she didnt claim her. the biolgical mom told me that she listed the childs info on her return but that that dosent mean she was claimed…the irs is telling me if her info was written down then shes been claimed. my main concern is that supposedly no one claimed the child so why is her ssn being rejected from or tax return? by looking at your tax return how can you tell if someone was claimed?
My daughter’s (Which is 6mo.) father and I were never married and hes not on child support, he has given me 220 monthly voluntarily ever since she was born. My daughter has lived with me the entire time and has not spend over nights or weekends, and now he wants half of the tax money. He said its the law that i need to give him half because of what he’s been giving me for her this entire time. Is this true??
I was wondering what happens when two parents have split custody and have a court agreement on each claiming a child for taxes. Wat happens when one parent went against that agreement a claimed both? Does this have to be resolved in court or police or the tax place…? Please let me know thank you
Hi Daniel,
Sorry but you can’t split the exemption that way. (You claiming the exemption and your ex claiming the child tax credit.) The IRS rules are very explicit about that–the child tax credit goes with the exemption. Sorry.
Hi Kris,
Yes you should be able to claim the EIC. You’ll need to amend your tax return. Yes you can claim EIC even though you let your ex claim the exemption.
Hi Jan, I think that you may have gotten me mixed up with another Chris, so I am going with Daniel this time.
Hi Jan, A followup question to my earlier one on the other blog. My income is too much to take advantage of the Child Tax Credit but I do not phase out for the exemption. My ex-wife on the other had has a very low income so the tax credit would help her out. I am the primary parent as our children live with me about 95% of the time. Can I use all of the exemptions while she uses the tax credits? It would save us combined quite a bit of money. In fact she would benefit from the entire $3,000 worth of credit for our 3 children. While the exemption would lower my taxable income by $3,800 per child.
Thank you,
Hi Jan,
Just wondering if you missed my question. I will repost:
Hi, I have a few questions about splitting exemption. My son’s father and I (never married and long broken up) have a court order from January 2011 and the dependency exemption clause states “For so long as the maternal grandfather provides health insurance for the minor child, Mother shall be entitled to the dependency exemption. Once the maternal grandfather does not provide the health insurance for the minor child, the Father shall be entitled to the dependency exemption during the first year in which the maternal grandfather does not provide such insurance, and the parties shall alternate the exemption thereafter. Both parties waive any and all right to claim the child as a dependency exemption except as stated above. Both parties will execute whatever documents are necessary to effectuate this provision.”
The reason we did this, was I lived at home with my parents for the first 3 years of my son’s life, and my father needed to claim my son to keep him on his insurance, which was excellent.
My first question is this, I moved out on my own at the end of May 2012, and my father continued to cover my son’s health insurance through the end of the year (2012), and therefore claimed my son as well. This year, we have put my son under his father’s insurance plan, as my parents can no longer claim my son since we have moved out. Could I have been claiming anything on my taxes for my son for the past three years that I was living at home? I assumed not, since my parents claimed him and we lived with them. Can I claim anything on this years tax return, since I have been moved out since May 2012, even though my parents claimed him in 2012? I have always paid for and provided child care, food, clothing, etc, I just couldn’t afford to move out on my own while I was finishing school.
My second question is looking toward the future. Legally, my son’s father and I have “joint physical and legal custody” but he sees his father every other weekend and various extended “vacation” visitations throughout the year. Next tax season, for 2013, I see his father making the mistake of claiming things he shouldn’t and I want to be clear who should claim what before then. I have read in previous posts things about head of household and other things, that can be claimed regardless of who has the exemption that year. I guess I am not familiar with what those things are, what I am eligible for, and what I potentially could have received in past years as well. Any input at all is appreciated. Thanks!
Hi Mark,
I don’t know of any California joint custody deduction. I’d as a California preparer, maybe there is but I just haven’t heard of it. It certainly wouldn’t help with the federal.
Hi Babanding,
Only the parent that the child lives with may claim the child care credit. Sorry.
Hi Melody,
Lots of people have trouble with that. Me too. So the decree says that your husband gets to claim your son until he is 18 or including 18? Re read the documents.
I’m inclined to have you claim him since you’ll be paying the tuition. Be remember, on a tax return, the child’s age is his age on December 31–so that might give you your answer there.
Hi Lance,
If your divorce decree was before 2009, you can just attach copies of your decree to the return. Here’s a post about that: http://robergtaxsolutions.com/2012/01/court-ordered-exemptions-and-the-irs/comment-page-4/#comment-10535
Otherwise, you need the 8332 form.
You don’t have custody so you don’t get the EIC–that gives you the child tax credit and that’s worth $1000. You also receive the exemption, that reduces your taxable income by $3800. The tax savings varies depending upon your tax bracket. If you’re in the 25% bracket, you save $950. If you’re in a lower bracket, it’s worth less.
Hey Zuly,
You can claim as many children as you have on your tax return. People think there’s a limit but there isn’t. Now you may only claim three for EIC, but if you have 20 kids, you may claim 20 exemptions if you needed to.
Now, you need to go take back your children! Paper file a return and claim those kids of yours. Don’t let your relatives abuse you like that. If you are a working mom, then the EIC is for you to help you raise your children.
If you need it, you can get free tax help from one of the VITA organizations. You have rigths. Good luck.
Hi Angie,
How to claim EIC when ex gets the exemption? Read this post: http://robergtaxsolutions.com/?s=split+exemption
That gives you the mechanics of doing it.
Hi Chris,
You’re out of luck. Well, not exactly–technically, since she moved out in July, you weren’t apart for a full 6 months so she technically should be claiming head of household.
What you could do–and this isn’t nice–nor do I think it’s the best thing for your family–remember you’ve got two kids to take care of. But, you could file as married filing separate and claim the girls yourself. Then you can make the IRS a part of your little family drama.
Now here’s the thing–
1. The IRS hates doing that.
2. What will be proven is that the kids were with her more and she should claim them, but
3. She’ll only get to claim Married filing separate and she’ll lose the EIC because you were together for part of the last 6 months of the year.
4. So when youre divorce actually goes through, you’ll be hit with even more child support then you will already be hit with.
So yes, there’s something you can do–but I’m not sure you really want to go there. Sorry.
Hi AJ,
I think you want to read this post: http://robergtaxsolutions.com/?s=split+exemption
That should answer your question of how to do it.
Hi Jan,
When my ex-husband and I divorced it was stated in our decree that he gets to claim our younger son (provided the child support is current) and I get to claim our older son every year. I am the custodial parent. My question is this: Our younger son wil turn 18 this year on June 30th (exactly 1/2 way through the year) and I’m not sure which of us should be able to claim him as a dependent on our taxes next year. My ex hasn’t contributed anything other than his court ordered child support and he has to carry insurance until my son is 18. He has supervised visits (4 hours per month). My son will be starting college in the fall and all loans, etc. will be taken care of by me so obviously I want to be able to claim him next year on my taxes due to the tuition credit. There is no way my ex and I can work together on any of this. Again, since his birthday is June 30th I have no clue who will get to claim him. If his birthday were a day or two different either way I’d know but I’m not sure since his birthday is exactly 1/2 through the year. Thanks so much!!
Hello. Simple and short question. In my coirt decree it states that I get to claim my son everyother year. The last year I claimed him I had to have a written form signed by his mom saying I could. Why is that and is there anyway around having to have her signature. Pkus all I got was the 1000$ child credit. But the court order ckearly states I get to claim him every other year?
my ex and i hve an agreement that even years he claims child as a dependent and odd years i claim child as a dependent. I have full custody of child and child resides with me. my ex filed taxes this year before me and filed for the earned income tax even though the child resided with me the whole year and he only has visitation every other weekend. how do i do my taxes and do i get to rihtfully claim the eic for our child?
sincerely
kris
OKAY I HAVE A BIT OF A PROBLEM ONE OF MY FAMILY MEMBERS WERE CLAIMING MY BOYS FOR OVER TEN YEARS . NOW I DONT WANT THEM TO CLAIM THEM,CAN THEY STILL CLAIM THEM WITH OUT MY PREMISSION ,I DONT LIVE WITH THAT PERSON …
I ALSO HAVE A NEW BORN AND HIS FATHER CLAIM HIM WITH HIS OTHER TWO KIDS FROM A PERVIOUS RELATIONSHIP.. I WOULD LIKE TO KNOW HOW MANY KIDS ARE YOU ALLOWED CLAIM ???
P.S ALL THREE KIDS LIVE WITH ME AND NO ONE ELSE ..
i’m allowed eic but it’s not my year to claim tax exemption how do i go about this? I got rejected on my taxes and It’s saying my dependent was claimed on my ex’s taxes and the social security number can’t be used twice. He gets tax exemption but i get earned income credit because my daughter lives with me. How do i fill this out on my taxes getting eic but not exemption?
I need help me and my wife are going through a divorce and when it came time for the taxes she already took and spent it all. We went to file together because she moved out in July and I have the kids half the week and she does I pick them up from school and have them untill six or seven every night and get them every Thursday, Friday, and Saturday. They told us at one place we were only getting back like $4500 and we was going to go get a second apinion. The next day she went done the taxes claimed both our girls head of house hold and single instead of married filing seperatly and then when I had a day off and asked her if she was ready to go do the taxes thats when she told me and left me high and dry. She told me we would split her check b/c mine is only $1200 back now the extra I pay in and we would split my check so its even. I found out she cashed the check and has spent all $8700 except $800 and told me I am out of luck. What can I do please help me.
I have 50/50 custody but mom will not work with me or give anything that would benefit me on my taxes. I was wondering in California if there’s a joint custody deduction that I could utilize?
I pay child support to my wife (we have been legally separated since May 2009) and added to my child support payment is 56% of day care cost for my daughter. I know that child support cannot be claimed on tax return but can I claim the daycare expense part. My daughter lives with the mother.
Jan,
Great info. Thank you! I seem to have a good understanding of the divorced parents with the 50/50 time tax rules. We are divorced for over 5 years now. We have 2 children, I’m the custodial parent of both. Up to this point we “split” the children between us for tax purposes. This year, my ex’s income is too high for EITC for our daughter and we agreed for him to keep our daughter as dependent, but I’d like to claim her under the “non-dependent EIC child”. Our older son lives with me full time, and I claim him as dependent, which qualifies me to claim our younger for EITC. My question: how do we go about it (especially number of months my daughter lived with me) so we still get what we are entitled to without getting in trouble with IRS?
Thank you,
AJ
Hi Jan, not sure if you missed my question above on Feb15th at 11:47AM but here it is again:
Hi Jan, A followup question to my earlier one on the other blog. My income is too much to take advantage of the Child Tax Credit but I do not phase out for the exemption. My ex-wife on the other had has a very low income so the tax credit would help her out. I am the primary parent as our children live with me about 95% of the time. Can I use all of the exemptions while she uses the tax credits? It would save us combined quite a bit of money. In fact she would benefit from the entire $3,000 worth of credit for our 3 children. While the exemption would lower my taxable income by $3,800 per child.
Thank you,
Hi, I have a few questions about splitting exemption. My son’s father and I (never married and long broken up) have a court order from January 2011 and the dependency exemption clause states “For so long as the maternal grandfather provides health insurance for the minor child, Mother shall be entitled to the dependency exemption. Once the maternal grandfather does not provide the health insurance for the minor child, the Father shall be entitled to the dependency exemption during the first year in which the maternal grandfather does not provide such insurance, and the parties shall alternate the exemption thereafter. Both parties waive any and all right to claim the child as a dependency exemption except as stated above. Both parties will execute whatever documents are necessary to effectuate this provision.”
The reason we did this, was I lived at home with my parents for the first 3 years of my son’s life, and my father needed to claim my son to keep him on his insurance, which was excellent.
My first question is this, I moved out on my own at the end of May 2012, and my father continued to cover my son’s health insurance through the end of the year (2012), and therefore claimed my son as well. This year, we have put my son under his father’s insurance plan, as my parents can no longer claim my son since we have moved out. Could I have been claiming anything on my taxes for my son for the past three years that I was living at home? I assumed not, since my parents claimed him and we lived with them. Can I claim anything on this years tax return, since I have been moved out since May 2012, even though my parents claimed him in 2012? I have always paid for and provided child care, food, clothing, etc, I just couldn’t afford to move out on my own while I was finishing school.
My second question is looking toward the future. Legally, my son’s father and I have “joint physical and legal custody” but he sees his father every other weekend and various extended “vacation” visitations throughout the year. Next tax season, for 2013, I see his father making the mistake of claiming things he shouldn’t and I want to be clear who should claim what before then. I have read in previous posts things about head of household and other things, that can be claimed regardless of who has the exemption that year. I guess I am not familiar with what those things are, what I am eligible for, and what I potentially could have received in past years as well. Any input at all is appreciated. Thanks!
I have a question. I have guardianship of my 3 year old nephew. He lived with me for 6 months in 2012 and in June, 2012 he has been living with my sister, because of some health issues I
was going through. I claimed him as a dependent and the child care tax on my tax return, my sister is wanting to claim him for EIC, I am agreeable to that as long as its legal. Are we able to do that?
Hi Gina,
Let me rephrase your question for you:
“I cheated my child’s father out of his refund last year and now this year, he took his rightful claim and I want to cause him trouble by getting him audited, even though he’s innocent of any wrongdoing.”
Gina–that’s what I’m hearing when I read your question. Is that really what you want to be asking? I hope not.
Hi TDK,
So your boyfriend claimed his child for head of household even though his child doesn’t live with him. Why should his ex tell him she claimed the child–that would be obvious. Sorry, he gets no sympathy.
He’ll wind up having to pay back the refund and pay penalties and interest.
Sorry Brandy,
There is no write off on the mileage for picking up your kids.