Tax Question - Advance Child Tax Credit for Divorced Parents

[NJDad]

Dear Socrateaser,


I was divorced as of June 30, 2003.  The Judge awarded me all four children as tax deductions for 2003 and onward. My calculated support was based off of the assumption that I would receive a full refund.


Just prior to the divorce, my STBX's accountant prepared the 2002 tax returns and included the 2003 Advance Child Tax Credit in it. This was the first year this was done. She received the check for $1,600 in mid-July. She is holding it until I agree to give her 50% of the check and its been almost a year now. I'm pondering filing a Pro Se Motion to get the check turned over to me.


When I checked with the IRS's website last July, it stated that the default is a 50/50 split unless a civil court rules the monies should be distributed differently. I can no longer find this article. All documents now state that a 50/50 split is in order.


Do I have a claim for the full amount of the Advance Child Tax Credit check or do I lose the $800 share this year?


Thanks,

NJDad

[socrateaser]

>Do I have a claim for the full amount of the Advance Child Tax
>Credit check or do I lose the $800 share this year?

Court orders are judge-made law. If your judgment/decree awards you all deductions for the child, from 2003 forward, then your 2002 return is not subject to the judgment. If you filed a joint return for the 2002 year, and your refund is for that year, then you and your ex would both be jointly entitled to the tax credit. Therefore, a reasonable settlement would be a 50/50 split, unless your ex is in arrears for support, or she is in some other way financially obligated to you.

As far as who has the credit for 2003 going forward, if your order awards you the children's EXEMPTIONS (people frequently describe children as deductions from taxable income -- this is not correct), that means they are your legal dependants, and therefore you alone are entitled to all of the various related tax credits, absent some other contrary court order.

[hoosierpapa4]

Interesting observation.  I was awarded the tax exemptions for year 2003 for which the X received monies.  I filed my taxes for year 2003 with all dependents listed and included my Court Order as proof that I was to claim the exemptions.  Talking with a tax expert (lawyer), she will have to return the money that she received as an advance tax credit as she we not entitled to claim the exemptions.  Doesn't make my pocket any fatter, but it is justice in that the X is now going to have to deal with the IRS.

Now, she was supposed to sign over the 8332's by January 10, 2004... didn't, instead filed (before January 10th) a clarification of the original order of the court challenging a passage that says "so long as Petitioner is current in his support each year" to mean that the arrearage must also be paid in full.  Good luck to her as the Court set the repayment of the arrearage at $50/week until paid in full, and I was current on both the arrearage and the CS.

To me, in that she did not sign the 8332's when she was supposed to, that is a clear indication to me that she is not abiding by the order of the Court.