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I know these two people who are fighting over who gets to file the kid on their tax returns. What if one of them files first, and the other tries later on? What will happen? Will there be an investigation to see who should really be able to file the kid or will they just tell the person that someone already filed that kid? Please tell me.

2006-11-24 12:17:17 · 11 answers · asked by Damon ♥ Elena 6 in Business & Finance Taxes United States

11 answers

Whoever files first will get the refund for that child. At my tax office, the second person's return wouldn't be accepted until the child was removed from their return.
BUT this is not the end of the story. If the person who files second - and didn't get the deduction for the child - was the one who rightfully was supposed to claim the child, they can 'do battle' through the IRS to show that they should have been able to claim the child and the first person was NOT supposed to claim the child. This gets the first person into trouble with the IRS, too.

2006-11-25 02:03:18 · answer #1 · answered by nova_queen_28 7 · 0 1

Only one has the legal right to claim the child. The other is guilty of tax fraud. it makes no difference who fills first. In the case of divorced parents, the normal rules for claiming a dependent are applied to both parents collectively to determine if either can claim the child. Neither parent has to provide 50% of the support as long as both together provide at least 50%.
If the two together meet the requirements to claim the child, there is a separate set of rules to determine which one can claim the child. In general, the custodial parent claims the exemption unless a court order or written agreement specifies otherwise. It doesn't matter which parent provides the larger share of the support.

2006-11-24 13:08:58 · answer #2 · answered by STEVEN F 7 · 0 1

It doesn't matter who files first.
Generally, the parent who has custody of the child for the greater part of the year can claim the child as a dependent on the federal income tax return. There are several exceptions to the rule, such as the custodial parent releasing his or her right to the child’s dependency exemption or where there are multiple support agreements. For more information, pick up IRS Publication 504, Tax Information for Divorced and Separated Individuals.
In taxes, we have to have a custodial parent, even in a shared-custody divorce. You are the custodial parent if, during the year, you have custody of your child longer than your child's other parent has custody.
Alternatively, you could be considered the custodial parent if the divorce decree identifies your home as the child's legal residence. Since custody rules differ from state to state, often an attorney is needed to assist in deciding which parent would be considered the custodial parent for federal tax purposes.

2006-11-24 12:29:46 · answer #3 · answered by kidd 4 · 2 0

It doesn't matter who files first, but rather who is entitled to the exemption. There are some pretty specific rules on who can claim a child. If there's no written agreement to the contrary, the exemption goes to the person whom the child lived with for more than half of the year in question. Amount of child support paid by the other person doesn't matter in determining who gets the exemption.

Download publication 501 from irs.gov for more detailed info.

2006-11-24 12:27:06 · answer #4 · answered by Judy 7 · 3 0

Doesn't matter who files first, you still need to show IRS proof of support, bills etc if you claim the child as a dependant. Unless agree on in court ( court mandated order) the primary custodial parent will receive the tax break. If both parties try to claim the child Uncle Sam will eventually find out and he won't be very happy about it. The person who tries to file illegally will be audited and then fined if caught. If you don't beleive me ask my ex-husband...!

2006-11-24 12:25:49 · answer #5 · answered by jesshispet 3 · 2 0

whoever has had the child longest more then 6 months living in home will get to file and if both file yes thier could be an investigation even charges of tax fraud

2006-11-24 12:51:43 · answer #6 · answered by Support Our Troops 3 · 0 1

I can only assume they are divorced.
Sometimes the decree says who gets to claim them.
Otherwise, whichever parent supplys over 50% of the support gets to claim them.
In most case's, it is the parent they live with, but that is not set in stone.
If one parent is found to have claimed them in error, they would have to pay back any tax benefit they received by claiming the kids, plus penalties and interest.

2006-11-24 12:27:30 · answer #7 · answered by Anonymous · 0 0

Whoever files second will not only have to pay the money back, but will pay a fraud penalty.

However, you didn't elaborate on the situation. Are they living apart with shared custody? Are they together but filing separately? It makes a difference.

Go to http://www.irs.gov for info.

2006-11-24 12:26:30 · answer #8 · answered by Anonymous · 1 2

First of all most people who pay child support think that gives them the right to automatically file the child on their return..Wrong. It's the person who has custody, although arrangements between the two parties can be made to take turns, or if unable to agree sometimes can have court determine the right to file every other year. If both have joint custody then the parent who contributes the most is the one who will file.

The custodial parent has the right to claim the child as a dependent unless that right is released to the noncustodial parent. If released, the waiver needs to be in writing, signed, and attached to the noncustodial parent's return. The waiver can be for one year, permanent, or any other way you want to do it. Form 8332 is the official IRS waiver, but you can also write up your own waiver and use it as long as it spells out who gets the deduction and is signed by the custodial parent. One item to note is that the custodial parent still has the right to claim head-of-household status, the earned income credit, and dependent care credit even though they have released the right to claim the child as a dependent. However, if waived, the noncustodial parent claims the $1,000 child tax credit along with the dependency exemption.

When can you claim your child as a dependent? If your child is younger than 19 at the end of the year (younger than 24 if a full-time student) and receives at least half of his or her support from you, then the child is a dependent. You can still claim your child as a dependent regardless of age if he or she has less than $3,100 of gross income and you are providing support. In considering whether you provide half of your child's support, factor in the "free rent" he or she receives from you if still living at home.

If you are the non-custodial parent and want to claim your child as a dependent, get Form 8332 signed before the divorce is finalized.

The custodial parent has the right to claim the child as a dependent unless that right is released to the non-custodial parent. If released, the waiver needs to be in writing, signed, and attached to the non-custodial parent's return. The waiver can be for one year, permanent, or any other way you want to do it. Form 8332 is the official IRS waiver, but you can also write up your own waiver and use it as long as it spells out who gets the deduction and is signed by the custodial parent. One item to note is that the custodial parent still has the right to claim head-of-household status, the earned income credit, and dependent care credit even though they have released the right to claim the child as a dependent. However, if waived, the non-custodial parent claims the $1,000 child tax credit along with the dependency exemption.

If you are in a higher tax bracket than your ex-spouse, modifying agreements to re-characterize payments as alimony would bring tax savings that could be shared by both parties. Child support is nondeductible by the payor, and is not included in the taxable income of the recipient. Alimony is the exact opposite, the payor deducts the alimony payment, and the recipient includes the alimony as income on his or her tax return.

If you are legally required to pay any medical expenses for your ex-spouse, deduct the expenses as alimony instead of on Schedule A as an itemized deduction.

If you do not have custody of your child, you can still deduct your child's medical expenses on your tax return if you are the one that pays the medical expenses.

In the absence of a written agreement, the general IRS rule is that the parent who has the children for the longest part of the year is entitled to the exemption. (26 U.S.C. Section 152.) This usually means the mother because she most often gets primary physical custody.

But if the father furnishes over 50% of the child's support, he is entitled to the exemption. He must file with his tax return IRS Form 8332, Release of Claim to Exemption for Child of Divorced or Separated Parents, signed by the mother. If the father claims the exemption without filing this form, he may have to prove that he furnished over 50% of the support for the kids if the IRS questions his return. That can hold up the money while being investigated!

2006-11-24 12:34:12 · answer #9 · answered by Joanne J 2 · 0 2

If both parties file the same chid the person who filed second will be responsible for paying what they recieve back to I.R.S

2006-11-24 12:20:27 · answer #10 · answered by Louise 2 · 0 3

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