Child Support And Tax Returns

[2boysmama]

I have a few questions. Number one: if my son's biological father is behind in child support, can he still claim the amount that he has paid (or is supposed to pay) on his tax return?
Number 2: If I cancelled the garnishments but the order still exists, will they still take a part of his tax return to cover the amount of back child support that he owed before the garnishments were officially stopped?
Also, what do I do as far as putting down the child support that I have received? Do I have to pay taxes on it?

[525601minutes]

Also, what do I do as far as putting down the child support that I have received? Do I have to pay taxes on it?

I don't know enough about the others - but -
Child support is not taxable for the receiver, however spousal support IS taxed so if you get that it must be reported.

[When does it end?]

If you pay child support, are you allowed to deduct anything on your taxes or claim the child as an exemption?

Nothing can be deducted for the child support payments. Child support payments are neither deductible by the payer nor taxable income to the payee. You may be able to claim the child as a dependent. The parent who the child lived with for the greater part of the year is the custodial parent. Generally the custodial parent is allowed to claim the exemption for the child if the other exemption tests are met. However, the noncustodial parent may be allowed to claim the exemption for the child if the custodial parent signs a Form 8332, Release of Claim to Exemption for Child of Divorced of Separated Parents, or a substantially similar statement.

Please refer to Publication 501, Exemptions, Standard Deduction and Filing Information, and Publication 504, Divorced or Separated Individuals, for more information.


References:

Publication 501, Exemptions, Standard Deduction and Filing Information
Publication 504, Divorced or Separated Individuals
Tax Topic 354, Dependents

Are child support payments considered taxable income?

No. Child support payments are neither deductible by the payor nor taxable to the payee. When you total your gross income to see if you are required to file a tax return, do not include child support payments received. For additional information, refer to Tax Topic 422, Nontaxable Income, or Publication 504, Divorced or Separated Individuals.

Is child support considered earned income when calculating the earned income credit?
No, for purposes of calculating the earned income credit, child support is not considered earned income.

Please refer to Publication 596, Earned Income Credit, for a complete discussion of the earned income credit.


References:

Tax Topic 601, Earned Income Credit

[2boysmama]

How can I make sure that the biological father does not try to claim him. He informed me that he was going to claim him on his tax return, but I have custody, and he only has visitations. Is there any way to prevent it ahead of time? Or is it even possible to catch it later?

[Dad2]

How can I make sure that the biological father does not try to claim him.

File your taxes before him.
When the IRS gets a 2nd tax return, for the same ss#, they will disallow the 2nd return.
If you can't file before him, then it's a fairly easy process to inform the IRS of your divorce decree rules. By sending them a copy. Only thing is, it's time consuming. May take a couple/few months to get it sorted out, and then you will finally get your money.

[2boysmama]

Ok I understand filing before him, but what happens if he is able to file before me? How can I prove fraud? We have "joint custody" but he resides with me 100 percent of the time, with no visits. How do I prove this?

[Dad2]

It will say in your divorce decree who has primary custody of the child.
It may even have specific wording stating who gets to claim the exemption.
If there's no wording that says HE gets the exemption, then it automatically goes to you.
You would need to send the IRS the divorce decree.
Send a certified letter to your ex,(and keep a copy for yourself) stating that legally, he is not entitled to the exemption. If he does take the exemption, you will file suit against him, asking that he be responsible for all costs relating to the process of fixing the error.
If he does take the exemption anyway....
Get a lawyer ( a nice expensive one), and let the lawyer do all the work.
If no lawyer...
Keep track of everything you do pertaining the fixing the error. Which includes minutes used on the phone, postage to the IRS, gas money if you have to travel to do anything, court costs for filing the suit. Anything you do, then bring him to court, maybe small claims court I would think.
Or, try contacting the IRS now, and see if you can get them to red flag his SS#, so they wont let him claim the exemption.

[When does it end?]

Just call his bluff and file. If the IRS receives duplicate social security numbers on multiple returns they will send you a letter asking for the reason you are claiming that particular number and any documents you have supporting your position.

If you are the custodial parent then you are the one entitled to claim your son. The IRS defines custodial parent as the one who has physical custody for more than one half of the year. As long as you did not sign tax form 8332, or have any other agreement in writing (with your signature on it), releasing your claim to your ex.

You probably have, or should have, court papers indicating which one of you has primary custody and which one has visitation. If not, at least you have your support order which would clearly indicate that you are the primary custodial parent.

Please note that the exemption does not go to the person who makes it to the post office first to mail their claim. It only ties up the claim of the second person until the matter is resolved.

Personally I would wait a while, let him file first, then file yourself. You need to out-weigh your desire for a faster tax return over the satisfaction of knowing he will have to pay back the IRS anything he receives on top of interest and penalties the IRS will hit him with.

To put your mind at ease, please call the IRS and speak to a representative or go to their web site and type in key words such as "duplicate social security numbers", "dependants", "custodial parent", "non-custodial parent", etc., and you should be able to find the answers you need.

[Ronny&NoahsMomma]

I also have a question for you. My ex (in the divorce decree) is supposed to be able to clm our son every odd year. My son is now 3 and I have barely recieved any of the child support (he owes somewhere around 7,000 or more in back child support). He told me they took most of his tax return and applied it to child support. I never recieved a dime of it. Also since he does have back owed child support I was told that I could claim him, even if it is his year until he is caught up. Would it not make more sense for me to claim him if they are going to take the $$ and not give any of it for my son? Please help me because I'm getting ready to file and I really don't want to have the wrong information before hand. Thanks...

[When does it end?]

Did you receive any type of public assistance for the children, past or present? Perhaps he has arrearages to pay to the state as well. Sounds like a possiblity if the money did not go to you. I don't know which arrearage they would apply his tax return against first (you or the state). Maybe someone else here knows.

If you want to go the route of claiming your son as you mentioned, I would have him sign tax form 8332. DO NOT rely on a verbal agreement with your ex. If it is stated in your divorce agreement that he gets the exemption on the odd years, you must have him sign that form. (Otherwise he is legally entitled to the exemption, and you could be the one paying penalties to the IRS if you both end up claiming him.)

Having an arrearage does not disqualify him from claiming your son, unless---you have it specifically worded in your divorce decree that you receive (X) amount of child support during the year in question.