Question

Advanced stimulus payments

Forum|Forum|4 years ago
July 21, 2021
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My ex and i have joint custody of our children with me having slightly more-physical and custodial. Every year tax time is horrible. Whoever files first claims the kids so i never know. Any time i start a new job, i just claim 0 dependants because i dont want to owe in. He knows hes not supposed to claim the kids because i have majority custody but he does. I havent “reported” him because i was told it could take years to sort. With stimulus payments being deposited 6 months early, im wondering what will happen if he files first this coming year after i have gotten the payments?

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X

xmasbaby0

Employee

Do you have a signed agreement --- or a signed Form 8332? The IRS cares who has the children for the most nights. If that is you then stop worrying about what you ex is doing and file your own correct tax return and claim your children. If he files first and you cannot e-file then you can mail in your return; the IRS will process it and you will get the child-related credits that you qualify for. It will not take "years"---but the IRS will sort out who could really claim them. It could take up to a year and then you will both get letters. Be prepared to show that the kids spent at least 183 nights with you.

Are you the custodial parent? Do you have an agreement with the other parent to allow the other parent to claim them--due to divorce or that you live apart and share custody? Did one of you sign a Form 8332?

If there is a signed 8332 then the custodial parent retains the right to file as Head of Household, get earned income credit and the childcare credit. The non-custodial parent gets the child tax credit for children under the age of 18. (for 2020 the age limit was under 17---it changes to under 18 for 2021).

As far as the IRS is concerned, the custodial parent is the one with whom the child spent the most nights during the tax year--at least 183 nights.

If you are a non-married couple who live together then only one of you can claim the child(ren) and the one not claiming the child does not enter anything at all on their tax return about the child.

We do not know if you would have to pay any advance payments back. There are some safe harbor rules that allow parents at certain income levels to keep the CTC money received even if they do not end up claiming them on a 2021 return. The rules are complicated and seem to be updating frequently.....it is all so new and we are all trying to keep up.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

A

Anon03Author

No we dont have any signed agreements. Last year i agreed to let him claim the kids and had to sign a form for it but any other year he claimed them without permission and i just didnt fight it. We were married for 10 years, been divorced for 5 years. I have 51% and he has 49% for pyshical and custodial both.

X

xmasbaby0

Employee

No matter what a divorce agreement says about the "percent" of custody----the IRS goes by the actual number of nights---so count them up.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**