User Topic: Divorce Tax Question
Member # 4504
Default  Posted: 5:35 PM, September 17th (Tuesday)

I am posting this for a friend:

"My soon to be ex and I are negotiating our divorce. I am offering to pay a number of extras - the children's medical insurance and most of the college expenses, but I would like to claim them as dependents for tax purposes. She objects - even though she is only working part time and her income is quite low.

She is planning to marry her BF. If she does, can take head of household status and claim them as dependents? Is that why she is resisting? Does he need to adopt them or something first?"

It's just so sad
But I'm moving on feeling better

Posts: 2506 | Registered: May 2004 | From: Cupertino, CA
Member # 19595
Default  Posted: 6:03 PM, September 17th (Tuesday)

I would talk to your attorney. The tax issue should addressed in the final decree anyway so there are no misunderstandings.

It's my life now, my choices, my mistakes to make and my victories to celebrate. His choices made me free of liars and betrayers in my life. That is priceless.

Posts: 20383 | Registered: May 2008 | From: Closer to where I want to be..
Member # 27186
Default  Posted: 9:18 PM, September 17th (Tuesday)

If she remarries, she files married filing jointly or married filing separately. If she can claim dependents, she can file head of household if not married. The children do not need to be adopted by the filer to claim them as dependents.

She is resisting probably because of the earned income credit, and child tax credit she would receive. There is a phase in and phase out level for it, I think right around 22,000 is the max payout. Both credits are refundable. Some divorces will split kids for taxes, or claim every other year. My divorce says we each claim one, but I actually have earned income, so I claim and give him some money. Definitely run these things by lawyer or tax person. It's been a couple years since my income tax class, lol!

BS-34; WXH-32; DS8; DS3; OC3
DDay: SEPT 2008
Divorced: JUNE 2010

Posts: 318 | Registered: Jan 2010 | From: Indy
Topic Posts: 3