Child Tax Credit & unmarried couple question

[Zee]

These are two separate questions.

Let me make sure I've got this straight. The noncustodial parent given the dependency exemption by divorce decree, also gets the child tax credit. The custodial parent gets HH, EIC, and dependent care expenses? Is that right?

In a non-common law marriage situation, if a boyfriend is maintaining the household and supporting his girlfriend & children he gets no tax benefit. He doesn't qualify as HH, etc.
Right?

This stuff sure gets confusing, and sometimes the more you read doesn't seem to help much, rather further cloud the issue.

[dsi]

These are two separate questions.

Let me make sure I've got this straight. The noncustodial parent given the dependency exemption by divorce decree, also gets the child tax credit. The custodial parent gets HH, EIC, and dependent care expenses? Is that right?

In a non-common law marriage situation, if a boyfriend is maintaining the household and supporting his girlfriend & children he gets no tax benefit. He doesn't qualify as HH, etc.
Right?

This stuff sure gets confusing, and sometimes the more you read doesn't seem to help much, rather further cloud the issue.

First question: Agree
Second question: Are the kids his or hers?

[jainen]

does not count

>>noncustodial parent given the dependency exemption by divorce decree<<

For the federal return, non-custodial parent needs Form 8332 or equivalent. Divorce decree does not count.

[Zee]

First question: Agree
Second question: Are the kids his or hers?

The girlfriend is the only parent.

[Zee]

>>noncustodial parent given the dependency exemption by divorce decree<<

For the federal return, non-custodial parent needs Form 8332 or equivalent. Divorce decree does not count.

So, you're saying that an 8332 is required in addition to the divorce decree granting the exemption? For the exemption, or CTC...or both?

[jainen]

in addition to

>>an 8332 is required in addition to the divorce decree<<

Not "in addition to." The divorce decree is irrelevant (unless it says exactly the same thing as Form 8332, an extremely unlikely possibility). The absent parent MUST attach a separately signed 8332 or equivalent statement.

However, under state law the divorce decree may well be controlling--it is in California, for example. Therefore in California the child would be claimed by the custodial parent on the federal return and the absent parent on the state return.

[Zee]

>>an 8332 is required in addition to the divorce decree<<

Not "in addition to." The divorce decree is irrelevant (unless it says exactly the same thing as Form 8332, an extremely unlikely possibility). The absent parent MUST attach a separately signed 8332 or equivalent statement.

However, under state law the divorce decree may well be controlling--it is in California, for example. Therefore in California the child would be claimed by the custodial parent on the federal return and the absent parent on the state return.

Thanks! I understand. How often do you think a preparer turns away someone without an 8332 that has a divorce decree granting support? Will the IRS reject the return?

[dsi]

I missunderstood the first question when I answered earlier. Agree that the 8332 is required to accompany the tax return. I have prepared tax returns in the past, before I began to e-file returns, and instructed the taxpayer to complete the 8332 before mailing the return. Without fail, when the CP letters came, the client brought them to me. It cost the client more for me to clean up the aftermath than it did for me to prepare the original returns. I haven't taken that route since I began e-filing.

[jainen]

Never

>>How often do you think a preparer turns away someone without an 8332 that has a divorce decree granting support? <<

Never. Preparers who don't know will just screw up the return. Preparers who do know will work with the client to comply with the rules and file state and federal returns correctly.

>>Will the IRS reject the return?<<

Yes, if the custodial parent also files using the same SSN. Probably, if you attach the divorce decree and correctly identify the exemption on Line 6c. Probably not, in other situations.

[Davc]

The girlfriend is the only parent.

I thought that only happened once, about 2007 years ago.

[Zee]

I thought that only happened once, about 2007 years ago.

LOL! Now, that's a careful reader...how many folks would notice that error in the sentence...maybe Jay Leno?