I'm divorced and have two children. By decree I can deduct one and my ex can deduct one. I'm disabled and on SS disability and that is not taxable so I really don't even need to file. What would be the benefit to my ex be if I were to assign that deduction to them. There is a simple IRS form for that purpose and I figure why give the Gov't the $$...?
2007-06-12 10:59:44 · 3 answers · asked by tropicals99 2 in Business & Finance ➔ Taxes ➔ United States
That depends upon her marginal tax rate. The exemption (not deduction) amount for 2007 is $3,300. Multiply that by her marginal rate (could be between 0% and 35%) to find the $$ value.
BTW, if your ex has custody you don't even need to sign the exemption over to her. Most decrees don't meet the IRS requirements for splitting the exemptions so if there is disagreement between the parties the IRS will assign it according to the law and that's almost always to the custodial parent. If she has custody, the IRS won't question her claim of the exemption as long as you don't also claim the child.
2007-06-12 13:30:25 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
The personal exemption amount times the tax bracket. But in addition, if the child is under 17 your ex would also get a $1000 child tax credit that comes straight off of the tax amount owed if that much tax is owed.
2007-06-12 14:35:54 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
In 2006, it was your husband's tax rate percentage times $3300.
2007-06-12 11:06:10 · answer #3 · answered by Dan 3 · 0⤊ 1⤋