Tax question - who can claim?

[dipper]

Dh received custody of ss on 6/15/06.  This means that he was custodial parent for 6 1/2 months of 2006.  DH is also responsible for 55% of support for ss.....was technically more when he was NCP as it was based on her old payscale of very little.  

So, we file taxes and claim ss for the time we had him.  Tax preparer did NOT tell us that even though we could claim him, if BM had already claimed him she got ALL the exemption, child credit, etc.....  WE find this out today.

BM says she claimed ss for half of the year.  Being that dh has never been able to claim ss while she was custodian though he was responsible for majority of support, he is still responsible for majority of support, and we had ss majority of year, we feel dh is the one entitled to the exemptions and child credit.

From what I have found online at Irs.gov, everything supports this.......

Has anyone dealt with this?  Is my interpretation correct?

[wallyworld]

what does your court order state?  Unless it addresses it then I believe the person who had custody the LONGEST of the year is entitled to the exemption.  BUT if you won custody, BUT never changed your court order addressing the exemption, your court order overrules...

[Ref]

- You can claim.

The IRS's custodial definition is different than the legal definition.

"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. "

You win.

Also, the IRS does not allow for a person to split dependency during the year.

http://www.irs.gov/faqs/faq-kw23.html

You win.

The only way you lose is if you have a written agreement that she may take the year. She may not ever take the dependency while you are custodial regardless of how much she financially contributes, unless you have a written agreement.

Best wishes,
Ref

[mistoffolees]

Hint: There's no way to claim someone for half a year. If you try to do it with tax software, it will only accept integers.  Similarly, if you fill in a fraction in the section for claiming exemptions, it will be bounced back.

[patton]

Go ahead and file and send in your paperwork. Send in a copy of the court order that shows you got custody in June, (don' send the whole order)  Be prepared for sending other paperwork IRS will ask you for also.

School records, church records, daycare records, receipts of purchases for child.  There's a whole list of things they will ask for and for the most part you will have everything and the other party won't.

I've been thru this TWICE, with ex trying to claim son or her mother trying to claim him, when I had him most of the time. There are a few new rules but IRS looks at the bottom line, who had the child the most and supported said child.

[mistoffolees]

You might want to calculate your taxes both with and without the deduction. With AMT hitting more and more taxpayers, you might be surprised at how little it's worth to you. In that case, you might negotiate with the ex and get something in return which IS valuable to you.

In my case, the deduction is only worth about $50 to me, but it's worth hundreds (perhaps thousands) to my stbx. I therefore don't mind letting her have it, but only if she gives me something in return.

Once you know the value of the deduction, you'll have some idea how much trouble you are willing to go to to preserve it.

[dipper]

Thank you all for your responses.  This would drop our refund by $1500, so it is worth it, plus its a matter of principal as well.   BM has told dh she will pay him $1000 for a past matter that she owes more for if he will accept that in writing, notarized.  Of course she is using the tax money that really should be his to pay him a past debt that he paid for her..... LOL

There is nothing in the court order allowing NCP to file.  There never has been.  While the lady that filled out our taxes acted kind of rude yesterday - as if she was tired of answering our questions - and she didnt even know what a Publication 501 was... - she did say that it is a matter of who had child the longest.  

DH had custody 6 1/2 months, he also pays 55% support, the first $250 in medical bills and 55% thereafter.  Also, in reality, bm and ss were members of her parents household from Feb - June.  She still is of course....

It is not like we would be taking money she paid in....she is not using any of the money on ss - its all for her.  She doesnt have any living expenses really because her parents provide her a home and food and even gave her the vehicle.  

Surprisingly a cousin brought up this subjec this morning.  She has a foster child and the parents keep claiming the child on taxes.  She was talking about having to mail it in..and I asked if she got the refund last year. She said you do get the refund, its only slowed down by mailing it.....

so, I have the letter ready explaining that according to publication 501.....and the copy of the custody order.........and was going to send in the court worksheet that clearly shows that dh is the majority supporter for ss as well....

Thank you all!