My ex needs to claim the kids on his taxes for medical insurance- but they live with me. Who gets the tax break? How should I file?

This is usually a part of the divorce decree. And who is telling him he needs to claim them on his taxes to claim them on his medical insurance.

A requirement of the medical insurance states he must claim the kids, but they live with me. I don't make very much money and he does, so I am sure he REALLY needs to claim them. What are your thoughts?

Child of divorced, separated or unmarried parents:
Only the custodial parent can claim the child. The custodial parent is the parent with whom the child lived for the longer period based on the nights spent. The other parent is the non-custodial parent. Non-custodial parent can claim the child only if the custodial parent signs a release Form 8332 or there is a court order meeting the IRS requirement. With form 8332, the noncustodial parent gets exemption deduction and child tax credit, but not the head of household status and EITC. Even after signing Form 8332, the custodial parent is head of household and get EIC and any child care credit. The court order or decree or separation agreement issued after July 2, 2008 can not serve as written declaration to release the claim of custodial parent that noncustodial parent must get release Form 8332 signed by the custodial parent. Your U.S. Tax Return: Child of separated or divorced parents (http://taxipay.blogspot.com/2008/03/child-of-separated-or-divorced-parents.html)

Yes, and sorry, I am a licensed insurance agent, and if the divorce decree states he is to furnish health insurance, who files them on taxes has nothing to do with it. Unless you are talking medicaid. In fact who claims them should have no bearing at all on health insurance. I am licensed in 5 states and know of know such rules

First, please do not use the Comments feature for followups, use the Answer options instead.

What EXACTLY does the medical insurance state? I'm betting it says that he needs to list them as dependents on the insurance NOT on his taxes. I'll repeat I've never heard of any medical insurance that requires dependents listed on the insurance be also claimed on the tax return. There may be a requirement to prove the children are his legal children.

birdlover - as others have noted you are the one who has the right to claim the children as your dependents. However, from a practical point of view - if your husband cliams them as his dependens and you don't, the IRS will never be the wiser. It's critical that you not get your "wires crossed" on this, or your ex could get into trouble. Perhaps you can work a deal with your ex: you let him take the tax break in exchange for the value of the lost deduction to you.

BirdLover:

I agree with ebaines. You need to negotiate this with your ex-husband and work out a deal that is mutually beneficial. If yo both use the same tax professional, he/she could model the return and work out the best course of action for BOTH of you.

I have done this multiple times for clients who got divorced, and it works out fine provided you both trust your tax professional.