Claiming kids for taxes-messy situation

[hollymckee]

I married my husband 4 years ago. Together we have a 2 year old. I have 2 boys from a previous relationship, he has a daughter from a previous marriage. I have full custody, where he has joint legal and physical. Which means they have to alternate years on claiming the child on taxes. The ex asked him if she could claim the child, since he had a child to claim. He told her no, that he needed to claim her. She said that wasn't right since he has one to claim (she wasn't sure if he claimed my boys or not) and she has none. He told her that he had 4 dependents on payroll, so they haven't been holding out much taxes. She then says that it isn't fair that he can claim 4 and he won't even let her claim her only one. She said it isnt fair that she cant claim her but she never showed concern of us having to pay penalties and pay in money if we didn't claim the child. Of course, nothing to her is fair, if it isn't in her favor or her idea. In my eyes, my/our kids shouldn't be any of her concern. Should we let her claim the child to "keep the peace" or is claim the child, since its 1) his year and right to do so, an 2) so we won't have to pay penalties just to be "fair"?

[pek64]

If it were me, I'd run through the taxes with and without the extra dependent. If it really will result in penalties, then you have a decision to make. It may be that there are no penalties, and you can be generous of you feel like it. But I'd want to really know the situation before making a decision.

[hollymckee]

That's what we had thought about doing. My aunt, who happens to be our accountant, said that if she were us, that's what she would do. I have no problem being generous, but if it results in us losing money, I'm not sure I could be.

[Mummoth]

I'd just stick to whatever the court order says. You can't predict the future and if things change in a way that it'd absolutely be to his benefit to claim his daughter, imagine the fight you'd have on your hands then!

[Kate&Joey]

Originally Posted by Mummoth 

I'd just stick to whatever the court order says. You can't predict the future and if things change in a way that it'd absolutely be to his benefit to claim his daughter, imagine the fight you'd have on your hands then!

ITA with this.  It very specifically says in DH's divorce agreement, "if the parties cannot agree, they go by the divorce agreement."  Your DH and his ex cannot agree; it should be your DH's turn.  It's no use arguing with some people about what is "fair."  The judge thought alternating years was fair. That makes sense to me!

[autumngrey]

In addition to it being part of the order that it is "his turn" to claim the child for tax purposes, I am inclined to believe the "fairness" has already been evaluated by the Court as well. My DH's monthly CS amount is higher than it would be without claiming DSD on taxes EOY. That's because he has more net income with the extra exemption and child credit.

This is the wrong part of the year to be making these kind of changes. Even though any fees you might encounter are likely minimal, the Court has ordered this. If she thinks its not fair, she can petition the Court or wait until the next cycle when your DH can evaluate her request and make preparations (ie change withholdings), if he chooses to agree to the change.

This is not about what's fair. That he has another child to claim is not the point. The Court has ordered this, the end.


On an "if we're going to deviate from the Court's order" note, I personally find alternating to be a pain in the rear. To me it should be claimed by whichever parent is in the higher tax bracket (considering real circumstances, not the hypothetical ones used for calculating CS, if there's a difference) since this provides the most benefit for the child! My DH agreed to alternate to "make peace" but it "costs" her over $1000 each year in CS+taxes because he gets more tax savings than she from claiming a child and he would owe more CS (well more than she gets in tax savings) as a result ... it would be a wash for our budget but it's real money not available to DSD to make this peace.