Council Tax Reduction

Saturday, June 19, 2010

Tax credit for children?

last year i separated from my husband.we have two young girls.i now live in an appartment with one of the girls and the other lives with her dad at his mothers house.last year my husband hardly worked,i don%26#039;t even know his earnings. he never showed me his check when he did work. i worked and paid most bills and medical insurances. can i claim both the girls on my tax return?? thank you

Tax credit for children?

Sounds like it, if your ex agrees in writing. This is what IRS has to say:

Children of divorced or separated parents. In most cases, because of the residency test, a child of divorced or separated parents is the qualifying child of the custodial parent. However, the child will be treated as the qualifying child of the noncustodial parent if all four of the following statements are true.

The parents:

Are divorced or legally separated under a decree of divorce or separate maintenance,

Are separated under a written separation agreement, or

Lived apart at all times during the last 6 months of the year.

The child received over half of his or her support for the year from the parents.

The child is in the custody of one or both parents for more than half of the year.

Either of the following statements is true.

The custodial parent signs a written declaration, discussed later, that he or she will not claim the child as a dependent for the year, and the noncustodial parent attaches this written declaration to his or her return. (If the decree or agreement went into effect after 1984, see Divorce decree or separation agreement made after 1984, later.)

A pre-1985 decree of divorce or separate maintenance or written separation agreement that applies to 2006 states that the noncustodial parent can claim the child as a dependent, the decree or agreement was not changed after 1984 to say the noncustodial parent cannot claim the child as a dependent, and the noncustodial parent provides at least $600 for the child%26#039;s support during the year.

Custodial parent and noncustodial parent. The custodial parent is the parent with whom the child lived for the greater part of the year. The other parent is the noncustodial parent.

If the parents divorced or separated during the year and the child lived with both parents before the separation, the custodial parent is the one with whom the child lived for the greater part of the rest of the year.

Example.

Your child lived with you for 10 months of the year. The child lived with your former spouse for the other 2 months. You are considered the custodial parent.

Written declaration. The custodial parent may use either Form 8332 or a similar statement (containing the same information required by the form) to make the written declaration to release the exemption to the noncustodial parent. The noncustodial parent must attach the form or statement to his or her tax return.

The exemption can be released for 1 year, for a number of specified years (for example, alternate years), or for all future years, as specified in the declaration. If the exemption is released for more than 1 year, the original release must be attached to the return of the noncustodial parent for the first year, and a copy must be attached for each later year.

Divorce decree or separation agreement made after 1984. If the divorce decree or separation agreement went into effect after 1984, the noncustodial parent can attach certain pages from the decree or agreement instead of Form 8332. To be able to do this, the decree or agreement must state all three of the following.

The noncustodial parent can claim the child as a dependent without regard to any condition, such as payment of support.

The custodial parent will not claim the child as a dependent for the year.

The years for which the noncustodial parent, rather than the custodial parent, can claim the child as a dependent.

The noncustodial parent must attach all of the following pages of the decree or agreement to his or her tax return.

The cover page (write the other parent%26#039;s social security number on this page).

The pages that include all of the information identified in items (1) through (3) above.

The signature page with the other parent%26#039;s signature and the date of the agreement.

Tax credit for children?

Either one of you can claim your girls...as long as both of you dont try to. If the IRS catches both of you claiming them for the child tax credit or the earned income credit you will have to repay that plus penalities. I would talk to your ex and find out what he plans on doing and if he is going to try and go after the money that you would get back if you claimed them. I would check with his mother also and find out if SHE might be trying to claim the one that lives there. Some might say it depends on what percentage of the year the child lived with you, but its mostly dependent on who provided all of the financial support for the child.

Childcare element of tax credits des it come out of your child tax or do you get more money?

There are two ways to get the tax credit for childcare expenses. One is to use a Dependent Care Account that is funded through pre-tax dollars and you draw it down throughout the year.

The other is to claim expenses on your tax return that were NOT funded through pre-tax dollars. So if you set up $2,000 in a pre-tax account, and actually spent $3,000, you could apply the excess $1,000 to the tax credit worksheet and offset some of your tax that way.

The same expenditures are not used for both ways of funding.

Childcare element of tax credits des it come out of your child tax or do you get more money?

no it doesnt come out of your tax credits.

It is paid directly to whoever is looking after your child, or it is paid in the form of vouchers which you give to the carer

Childcare element of tax credits des it come out of your child tax or do you get more money?

Basically the Child Tax Credit and the Dependent Care/Expenses Credit are just that---credits to reduce the amount of your taxes that you owe. If yours is big enough, it may bring your tax liability down to zero. It will not give you a tax refund in itself--so NO, it won%26#039;t give you more money! But, the Additional Child Tax Credit will actually give you a refund if you qualify. Just fill out the worksheets and see.

Childcare element of tax credits des it come out of your child tax or do you get more money?

Assuming you are in the UK? Childcare credits are paid directly to you and you are then responsible for paying you nursery/childminder. They are separate from child tax and working tax credit and these should not be affected. I personally receive the childcare element for my 2 youngest children and i also run a nursery where we never receive payments directly from HM revenue and customs they just confirm with us if the child attends etc.

What exactly am I supposed to send.... reguarding the U.S income tax return?

The university asks for %26quot;A signed copy of the 2007 federal income tax return, including all schedule and W-2%26#039;s%26quot;

so just the little W-2 form, the 1040 Form and the schedule C-EZ, Schedule SE, and Schedule EIC?

what about the forms labeled- 8812 (Add. child tax credit), the IT-201 Form (Resident income tax return) and the IT-213 (Claim for Empire State Child Credit)

Thanks, I%26#039;m really confused

What exactly am I supposed to send.... reguarding the U.S income tax return?

Yes, only send them what they%26#039;re asking for -- just the 1040 form, schedules, and W-2s.

The information from the other forms you mentioned is carried over to the 1040 or schedules already.

The university is apparently not interested in the details of how your parents calculated those amounts, simply how they reported those amounts.

Do you get credit on your tax return for child support payments made?

Child support payments are never deductible for the person who paid and never income to the person receiving the payments.

Child support payments do not give the person who paid the right to claim the dependency exemption.

Do you get credit on your tax return for child support payments made?

If you have provided more than half of the child%26#039;s support, you can claim the child as an exemption. This is different than deducting the support payments.

Do you get credit on your tax return for child support payments made?

Yes.

Do you get credit on your tax return for child support payments made?

No, you do not. Child support is NEVER deductible.

Under VERY specific circumstances you MIGHT be able to claim the child as a dependent and take an exemption for them. See IRS Pub 501, page 11 for full details. Merely providing more than half of the support is NOT sufficient to claim the exemption.

Do you get credit on your tax return for child support payments made?

No. Child support payment are not deductible.

The custodial parent claims the exemption for the child - UNLESS there is a stipulation in a custody, separation or divorce decree...or if the custodial parent signed an 8332 to allow the non-custodial parent to take the exemption.

Do you get credit on your tax return for child support payments made?

Child Support is not taxable, nor deductible. the child(ren) however, are.

if its not in your divorce papers, or a court order who can claim them the IRS goes by this;

who pays for more then 50% of the childs living expenses

who the child lives with for a certain amount of months per year.

if both parents claim the child(ren), the IRS will audit BOTH parents. and the parent with the living expenses receipts wins.

OK, lets take a look at what you might pay...

you pay what? 400? 600? 900?

ok, lets see...

rent; 1000

electric 300

food 400-600

heat 300

phone/cable 100

auto; (for doctors, dentists, take to school when they miss the bus, pick up when sick, pick up medicines, get food and do much more...) 200

that doesnt even include clothes, shoes, sneakers, school supplies, hair cuts, class trips, class pictures, over the counter medicines, perscriptions, laundry det, soap, shampoo, toothpaste, christmas, easter, tooth fairy, birthdays, etc. etc

if you are on civil terms w/the ex, see if you can share every other year of claiming the child...

TAX INFO

http://www.taxsites.com/index.htm

http://www.divorceinfo.com/taxes.htm

http://www.irs.gov/taxtopics/tc354.html

http://www.irs.gov/taxtopics/tc422.html

http://www.irs.gov/faqs/faq4-5.html

http://www.irs.gov/localcontacts/index.h...

http://www.irs.gov/advocate/index.html

http://www.irs.gov/publications/p525/ind...

http://www.fms.treas.gov/faq/offsets_chi...

Does this child support/tax situation make sense to you?

I don%26#039;t get this. Maybe someone can shed some light of the subject and let me know if there%26#039;s something I%26#039;m missing and not seeing...

Over the course of a year, I will have paid about $9,000 in child support. That%26#039;s roughly 30% of my pay...give or take. I am still in my daughters life and have never been any type of %26#039;dead beat%26#039;.

From what I understand, child support is not a deduction on your taxes and my ex doesn%26#039;t have to claim it as income.

What doesn%26#039;t make sense to me is that my now ex will be getting back about $3,000 in taxes because she%26#039;s claiming my daughter.

I will owe $1,500 because I will be filing single with no dependants.

So if the child support amount I pay is taking care of large portion of my daughters needs, how is it that only my ex gets all the monatary tax credit just for having physical custody of her? I am paying my share of costs. So why don%26#039;t I get any credit?

Let me know if there is something I am overlooking.

Does this child support/tax situation make sense to you?

If your daughter lives with her,then she is the one who would be claiming her.My ex and I put it into our divorce paperwork that we would take turns claiming her every other year. If youdidnt do that,you arent totally screwed. If you and her can agree to let you take the credit,every other year,or whatever you agree to,you can do so.

See below taken directly from the IRS site

http://www.irs.gov/faqs/faq-kw46.html

.3 Filing Requirements/Status/Dependents/Exemption... Dependents %26amp; Exemptions

How do you claim a child if you agree with your ex-spouse to claim him 6 months and he claims him the other 6 months of the year?

The dependency exemption can not be split. Generally, the child is treated as the qualifying child or qualifying relative of the custodial parent. This parent is usually allowed to claim the exemption for the child if the other exemption tests are met. However, the child may be treated as the qualifying child or qualifying relative of the noncustodial parent if certain conditions are met.

The custodial parent signs a Form 8332 (PDF), Release of Claim to Exemption for Child of Divorced or Separated Parents, or a substantially similar statement, and provides it to the noncustodial parent who attaches it to his or her return. Please beware that if the custodial parent releases the exception, the custodial parent may not claim the Child Tax Credit.

Refer to Publication 501, Exemptions, Standard Deduction, and Filing Information or Publication 504, Divorced or Separated Individuals, for more information on the special rule for children of divorced or separated parents.

References:

Publication 501, Exemptions, Standard Deduction

Publication 504, Divorced or Separated Individuals

Form 8332 (PDF), Release of Claim to Exemption for Child of Divorced or Separated Parents

Tax Topic 354, Dependents

Does this child support/tax situation make sense to you?

unfortunately, you are correct. :-(.

you got hosed.

Does this child support/tax situation make sense to you?

If you had a good lawyer, you would have in the divorce agreement that in exchange for adequate support, you would claim the child as dependent. Since that was not done, you are stuck with the payments and not being able to claim the child. If your were on good terms with your ex, she could fill out form 8332 and allow you to claim the child instead of her; worth a shot.

Does this child support/tax situation make sense to you?

If you think you provided more than half her support--and be conservative in your estimates--claim her as an exemption then duke it out when IRS contacts you about it.

Does this child support/tax situation make sense to you?

you may be %26quot;in her life%26quot; be you are not raising her full time. If you ever got %26quot;shared or joint%26quot; custody, then you could claim her one year and your ex could claim her the next. Or that%26#039;s how it works in Florida... I am not trying to be rude but I want you to see from another point of view...when your daughter is sick,who has to call-in sick every time during the year,take off work,take her to the Dr., etc..I could go on but I think I%26#039;ve made my point,at least I hope I have and I hope I haven%26#039;t hurt anyones feelings.

Does this child support/tax situation make any sense to you?

I don%26#039;t get this. Maybe someone can shed some light of the subject and let me know if there%26#039;s something I%26#039;m missing and not seeing...

From what I understand, child support is not a deduction on your taxes and my ex doesn%26#039;t have to claim it as income.

What doesn%26#039;t make sense to me is that my now ex will be getting back about $3,000 in taxes because she%26#039;s claiming my daughter.

I will owe $1,500 because I will be filing single with no dependants.

So if the child support amount I pay is taking care of 100% of my daughters needs, how is it that only my ex gets all the monatary tax credit just for having physical custody of her? I am paying my share of costs. So why doesn%26#039;t I get any credit?

Let me know if there is something I am overlooking.