Speaking of taxes, I have a question. I have worked for the better part of the last 15 yrs, but my now ex has continually forced me to let her mom and stepdad carry our children. Now if can she legally do that? The children have stayed with them maybe 3 months in the entire 15 yr span.
Do you mean that your in-laws reported your children as their dependents for tax purposes?
Whether any one person is a dependent of another has a clear tax meaning in every jurisdiction. It is defined. And every place I know of it is based on this: if someone pays a large portion of another's living expenses (the portion varies by jurisdiction), then the second person is their dependent. Claiming dependency in a way that does not meet the definition of your tax code is probably a tax violation.
Please confer with a local tax accountant.
My understanding in the U.S. is that if two people try to claim the same dependent, they will be subject to an audit.
If/when you move forward with divorce, you will likely write into the plan who claims the children for tax purposes. So you will have an opportunity to make a definitive decision on this.
Quote from: Penny Lane on September 28, 2021, 08:45:42 AM
My understanding in the U.S. is that if two people try to claim the same dependent, they will be subject to an audit.
If/when you move forward with divorce, you will likely write into the plan who claims the children for tax purposes. So you will have an opportunity to make a definitive decision on this.
I am guessing they did this so your parents in law would get an earned income credit for each of the kids, and if then likely collected these funds from the parents or let them have it to their benefit.
You will definitely want to get this in order by next year. Filing this way my mean they are getting 250.00 each every month per kid, that you my qualify for if your are not in a high income as a single earner.
It's possible you could file a mended returns and get this corrected for past years.
You would want to conult a tax preparer who is credentialed as an Enrolled Agent. They have more training and can work on your behalf and represent you to the irs.
Yes she stated flatly that her step dad would Carry the kids because if he didn't he would owe taxes and if I said anything to anyone there would be consequences.
Do you interpret "there will be consequences" as a threat of physical harm? But whether or not it is intended that way, the in-laws appear to be the ones who would or should suffer consequences, for breaking the law (tax fraud).
Physical harm is exactly what I'm saying aka "We'll cut your throat" etc. So it is tax fraud then? I wasn't sure. Since she permitted it.
Yikes. This is a scary situation. When you got the divorce, did you have a lawyer? If yes, could you talk to this person about the tax issue?
There was no divorce, we were never married. But there may be lawyers in my future anyway for custody issues.
Quote from: Gettintired76 on September 28, 2021, 07:31:26 PM
Physical harm is exactly what I'm saying aka "We'll cut your throat" etc. So it is tax fraud then? I wasn't sure. Since she permitted it.
Let's be explicit: nothing you hear on this site should be trusted as to direct legal or tax advice. You need a lawyer or accountant in real life.
But I repeat my previous statement: tax forms ask you if you have any dependents, and there is a definition of that. They may not be traded among friends with or without consent. Reporting as a dependent a person who doesn't meet that definition with respect to you is incorrectly filing taxes. Knowingly doing so to evade a legitimate tax obligation is not highly regarded by our friends at the IRS.
Neither is
allowing anyone to do so.
:yeahthat:
As mentioned above, PLEASE consult with appropriate professionals! I understand we do what we do, go along to get along. Understand this choice could have ugly repercussions for you.
I know all to well
I have been laid of due to COVID-19, so I will be without a paycheck for at least the near future (temp worker no work no pay). There are several jobs available but you need a driver's license ( suspended due to no insurance). Once I am back on my feet I am approaching a lawyer about this, I reported it to the H&R Block that we all filed at several years in a row, they would say her parents were blackballed then the next season let them do it again.
I got paperwork in the mail several days ago from the IRS I owe them almost $2,000 because I carry the kids as dependents on my pay check (less taxes) but wasn't allowed to carry them on my returns. This was from 2019 I owe more from previous years. I have the number to get into contact with and will do so. Izumi what will happen to them if found "guilty" of fraud the system and would I get the back refund that is due me?
If it's determined to be fraud, someone will owe back taxes, penalties (and interest) for said fraud. First there will be an investigation and that takes time.
Nah I was just wondering. Yeah I know it will take time.
It's going to be hard for them to do a proper investigation on them tho, my ex had our address as her mother's address for years she would never let me put my proper address on anything.
There's an update on the tax situation, my ex is most likely going to be letting her new husband file the kids, even tho she has only been around the for well 3 months now. I'm trying to get all my stuff in order so I can file before her.
So she wants the earned income credits and child support.
In my opinion this would be a move against you more than financially. It would indicate he is supporting them or at least your ex could present it that way to the kids. Not good.
To clarify, is your ex letting her new husband claim the kids without her, or are they filing jointly and claiming the kids?
Quote from: Gettintired76 on January 08, 2022, 03:50:05 PM
There's an update on the tax situation, my ex is most likely going to be letting her new husband file the kids, even tho she has only been around the for well 3 months now. I'm trying to get all my stuff in order so I can file before her.
Nobody gets to choose who it is that claims someone as a dependent. IRS rules define what it means to have a dependent. No two people ever have legitimate claims at the same time, though in close calls two people could genuinely disagree. So if you
know you are the one who can claim them for 2021, you win.
But you are also right to want to get in there first. The second person trying to claim the same kids will probably be the one who has to fight for it. Be prepared with evidence that
you are the one providing more than 50% of their expenses in 2021.
Good luck!
Oh she already gets the credits she's had thousands of dollars come to her the last 3 months and still goes at me because Can't pay support of which I've only missed a month.