New Client - Pending Divorce - Head of Household?

[zeros]

Client is scheduled that has a one year old child that lived with him 7 months. Joint return appears not possible. Both want to claim child. I'm thinking that because the child lived with the client for that amount of time. paid more than half the cost of keeping up the home, and spouse did not live with client during the last 6 months of the year that he could claim child & HOH? Could he also claim the EIC if income allowed it? Your opinion is appreciated.

[DonB]

Yes to all. He needs documentation to prove these facts as he will need them if she also claims the child. Whoever e-files first prevents the other from e-filing when both claim the child.

[mastertaxguy]

1. Question assumes other spouse is other parent of the child.
2. Based on your scenario, client could qualify as HOH and if applicable, EITC, CTC, dependency, etc. But.....
3. Real battle will be over dependency with other parent seeking advice from another tax professional, perhaps someone reading these forum entries, claiming the child as dependent and also HOH status with a separate address.
4. Seems like we have had this question/issue before.
5. As always, TTB section on filing status and head of household provides guidance on this issue.

[RLymanC]

New Client

Your client could give non-custodial parent form 8332. You client would still file HOH EIC

[JenMO]

couple: H left, kids stayed with W (both parents of kids), no divorce and no official separation agreement. H is filing MFS with kids, said his tax pro said she could file MFS and still get EIC. Of course, not right, has to file HOH (she is custodial and he left in March). She did not give him a waiver, and by saying that isn't he claiming EIC he is saying he hasn't had the kids over half the time. If we can't file before him, can we paper file, claim the kids and EIC? Will she get her money, or will IRS look into before issuing her refund?

[mscash]

Who gets the kid

If the child lived with your client for more than half the year and the other parent lived in household less than six months your client can file as head of household and claim the exemption without working up a sweat. If the other parent files first and claims the exemption IRS will eventually sort it out but if your side files first you will head them off at the pass.

[ddoshan]

You most certainly can paper file the return, if necessary, claiming all allowable benefits and credits, assuming your client indeed meets all the criteria. Just ask all the proper questions and document things.

[tpnl]

Attorneys involved?

If they are going through a divorce and were married at the end of 2013, the divorce decree could stipulate that they file married filing joint. I would have your client consult their attorney before filing. They may have to file an amended return if they go ahead and file now HOH or MFS.

I have seen many divorces over the years where the divorce decree said they had to file the best way possible for the last tax year they were married. The party who files too early and then has to amend could have to pay some of their refund back.

Be a little cautious with this one. Ask about the attorneys.

[ATSMAN]

Make sure 8332 is signed if an attorney is now involved!

[mastertaxguy]

Form 8332..

With all due respect, form 8332 is not needed in the scenario presented. The other parent is NOT the custodial parent.

[JenMO]

We're going to try and efile first, but who knows what returns will be taken first when the date opens up. He is filing with HRB, and texted my client about what his tax pro said about MFS and EIC. Of course, people don't always hear correctly, or when can't remember say what they think someone else said. Can't believe HRB thinks you can file MFS and get EIC. If we have to paper file, will she get her refund and then hear from IRS, or will she have to wait?

[WhiteOleander]

HA, Don't worry. If they file MFS, the program at Block will not let them generate EIC.

[DaveinTexas]

Did you just say

HRB and tax pro in the same sentence? Surely you jest! Only kidding, no Block bashing here. I'm with tpnl on this one. Besides who decides who is the custodial parent if the divorce hasn't occurred yet?

And I've noticed that some people think filing HOH is filing separately (or filing as a Single person). They are probably just mixing up terminology. It may be wise to hear what the divorce attorneys say first. But if that isn't an option, make sure your client can prove the children's residency (school, medical records, lease agreements, etc).

The husband filing first improperly will delay the overall results greatly. Expect to file by paper, expect an IRS letter, then expect to substantiate the dependency claim. Great fun huh?