I married a single mom of two in August of 2006. Her and the kids have been living with me ever since (I did not legally adopt them). I supported them 100%. Shelter, food, bills, diapers, etc...
In mid-November of this year, due to the fact that me and my wife are separating, the kids moved out to their grandparents house (my in-laws) where they will stay till the end of the year, at minimum. There is also a chance that my wife will sign the kids over to my in-laws (i.e, they'll legally adopt them).
So, the bottom line is: I supported the kids for the first 10 and half months of the year. My in-laws supported them for the last one and half. Who gets to claim them on their taxes? If both sides file at the same time claiming the kids, who will get it?
We're not on good terms, so them signing anything allowing me to claim them is out of the question.
Me and my wife are still married and probably not gonna be divorced for few months into the new year.
2007-11-26 02:34:53 · 5 answers · asked by jimmyaven 1 in Business & Finance ➔ Taxes ➔ United States
First, you need to decide if you and your wife are going to file a joint return or separate returns. While you're not on good terms, there may be a lot of money involved. Neither of you will be able to file as head-of-household (sounds like you're living together after 30 June.) Filing separately means no earned income credit or most other credits. And if you're in a community property state income has to be divided for the time you and your wife cohabited.
Your in-laws can't claim the kids as they didn't live with them for more than half the year. Doesn't mean they won't put them on their return. But if you claim them and they claim them, the IRS will check the facts and would eventually give you the exemptions. Even though you didn't adopt them, they are your stepchildren.
If you have an attorney, he and your wife's attorney should advise the two of you on the best way to file so you pay the least tax. They won't have emotions mixed up in what is an economic decision.
2007-11-26 03:06:08 · answer #1 · answered by Knightly 2 · 3⤊ 0⤋
Well, this is a little bit tricky. Did your wife move in with her parents along with the kids? If she did, then she would have lived with them longer than you did, so she'd be the one who could claim them. If she didn't, so you each lived with the kids the same amount of time for the year, then assuming that your income is higher than hers, you could claim them - stepchildren are treated for tax purposes like biological children. The grandparents can't claim them in any case, since the kids didn't live with them over half the year.
Unfortunately, from what you say, this will probably end up in a mess if multiple returns claim the same kids - and it doesn't matter who files first, except that the second return to claim them wouldn't be able to be efiled, it would have to be mailed in. Then the IRS will send both parties who claimed them a letter explaining the rules and asking that the person who doesn't qualify to claim them amend their return and drop the claim. If nobody does, then the IRS will look at the facts and make the determination of who gets the exemptions.
Good luck.
2007-11-26 14:55:44 · answer #2 · answered by Judy 7 · 0⤊ 1⤋
These children are your stepchildren and the same rules apply to them that would apply to your own children.
The children can be claimed as your dependent qualifying children if:
1. They are your children (which they are)
2. They are under age 19 or under 24 and full-time students
3. They lived with you for more than 6 months
4. They did not provide over half of their own support
Although you were not married to their mother for six months in 2007, you are considered married to her for tax purposes for the entire year if you are married to her on December 31.
You qualify as a parent, and therefore if you claim the children and the grandparents claim the children, you will win the tiebreaker.
That said, be sure to file as early as possible. To get benefits such as the Earned Income Credit, you must file a joint return with your wife. If that is not possible, you can still file a separate return and claim the children. You will get the exemptions plus the Child Tax Credit.
Also, if your spouse had no income, is not required to file a tax return, and cannot be claimed as a dependent on another return, you can include your spouse on your married filing separate return and get an exemption for her as well.
2007-11-26 11:40:48 · answer #3 · answered by ninasgramma 7 · 2⤊ 1⤋
They must live with you for a minimum of 6 months to be claimed, so the grand parents may not claim them until possibly next tax year. You must have provided more than half of their support in those 10 months to be able to claim them. (Sounds like only you can claim them)
2007-11-26 10:56:26 · answer #4 · answered by rob b 3 · 1⤊ 2⤋
ask the IRS. they can tell you what you need to know.
2007-11-26 10:43:46 · answer #5 · answered by morningstar6707 5 · 0⤊ 4⤋