Ask Me Help Desk - How does child support affect my income taxes?

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Originally Posted by Skylertrip

Bias opinions mean nothing to me.

What you are really saying is that opinions that don't agree with your view of the world mean nothing to you. And if that is the case, why ask for them?

I sympathize with your issues of visitation and custody. I've tried to help in the other thread. But you can't even tell us accurately whether you have parental rights or not. By the way, it is possible in some states to have rights terminated and still be responsible for support.

I don't recall whether you have an attorney or not. But if money is not an object, then you should have an attorney to represent you in these matters.

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Originally Posted by Skylertrip

.. I care about my son whom they've kept me from for years. I do everything in my power to have my parental rights restored and I'm denied. ... As far as adoption they won't because they then won't receive support for my son which means one or both would need to get employment and with the grandfather being 1 year away from retirement that's not something they will be doing.

I didn't see that you addressed this - I no longer think I'm prying.

Why did you lose custody and why can't you get it back?

How noble of you to be concerned about the Grandfather's retirement.

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Originally Posted by Skylertrip

.... Is child support tax exempt?...

It doesn't work that way. "Tax exempt" would apply to certain items of income. What you pay for child support is obviously not income. The amount of child support you pay is not a deduction (whether you itemize or not), if that's what you mean.

You may, however, count your child as an exemption on IRS Form 1040, line 6 (c) (and thus qualify for more favorable tax treatment), if you pay more than half of his or her support. This is not a detrmination the court makes any more; it would be determined by the IRS should both you and the custodian file, or if you are audited.

How about I compeltely carify everything. Back in 2006 my son was removed from my custody due to the potential of harm from his father. I remained compeltely complaint with treatment throughout the entire court proceeding however since my son's father would not change his address and would not testify in court that he was no longer residing with me I had him formally evicted. That was not adaquate for the case worker involved, she still believed we were living together and in a relationship so they granted permanent guardianship to the paternal grandparents. No termination of parental rights. Over the next 5 years I worked on my treatment plan that was needed to be completed upon my request for reinstatement of parental rights. As one might know it is very hard to go to psychological counseling, take random drugs testing, have a full time job that warrants the ability to pay for childcare and health insurance all at once. I did exactl;y that. As I said before I sent them checks and clothing and always offered anything I had to them for the sake of my son but was denied that at every turn. The relationship between and the grandparents was always strained due to the fact they knew what my intentions were on regaining parental rights and eventually guardianship. Multiple times they moved and didn't inform myself or the courts. They would stop all contact between myself and my son for months, once it was for over a year. I finally had completely my requirements and we then returned to court. I was told that "it's too little, too late" and "you have no rights to that child" and "if and when my son becomes of age to decide if he would like to reside with you we could take that into consideration". Despite all my efforts and proof of negligent behaviors and potentially dangerous environment in which my son was and is being raised in they still found in favor of the grandparents. After the last court hearing this quickly turned into a fight over money. Literally the day that we all were told that there was really nothing I was capable of doing to restore my parental rights they then filed for child support and with in 4 days the grandfather had either lost or quit his job.
As I said before I don't really care about the money, I really have no choice in the matter considering its directly removed from my pay as a garnishment. What my concern is what kind of life and support my son is actually getting. I know that a lot of my thoughts were scattered throughout this entire conversation. My original question was how does my child support payments affect my income taxes at the end of the year and that if I can prove that I'm providing over half of his support for the year, wouldn't I in fact be able to claim him as a dependent?

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Originally Posted by Skylertrip

My original question was how does my child support payments affect my income taxes at the end of the year and that if I can prove that I'm providing over half of his support for the year, wouldn't I in fact be able to claim him as a dependent?

I posted the IRS site/rules/regulations - I would suggest that you read them. I am not going to read and interpret them for you.

As I said before I was just clarifying. I don't need someone to "interpret" anything for me.

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Originally Posted by Skylertrip

As I said before I was just clarifying. I don't need someone to "interpret" anything for me.

You kept asking so I thought you didn't read it. Do you qualify to declare the child as a dependent/exemption? That's the original question.

It seems clear to me - "In order to declare a child as a dependent, he must no more than 18 years of age at the end of the filing year, or 24 years of age if the child is attending school full time. The child must have lived with the taxpayer for at least half of the tax year, and the taxpayer must have provided at least half of the child's support. A child cannot be considered a dependent if he is being claimed by someone else. A child being claimed as a dependent must be a citizen of the United States."

Half of the year has passed so he CAN'T live with you for at least half of 2012.

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Originally Posted by AK lawyer

It doesn't work that way. "Tax exempt" would apply to certain items of income. What you pay for child support is obviously not income. The amount of child support you pay is not a deduction (whether you itemize or not), if that's what you mean.

You may, however, count your child as an exemption on IRS Form 1040, line 6 (c) (and thus qualify for more favorable tax treatment), if you pay more than half of his or her support. This is not a detrmination the court makes any more; it would be determined by the IRS should both you and the custodian file, or if you are audited.

She started asking about the exemption - I thought that's what she meant.

That's the law that I posted. I just posted it again.

The concern isn't this year and obviously he won't be residing with me and I guess that's where I'm not understanding. It says that the person with whom the child resides and received over half of his support can claim him but his over half of his support next year comes from myself and he still doesn't reside with me does that give myself a chance to claim him as my dependent. It doesn't clearly state possibilities with different circumstances. I guess I should have taken this issue to a tax professional instead of on-line. I was curious and I bit way more off than I can chew when it comes to all of your responses. Sorry for wasting you time.

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Originally Posted by JudyKayTee

She started out asking about the exemption - I thought that's what she meant.

That's the law that I posted. I just posted it again.

Thanks. You were more correct than I was. The taxpayer has to have physical custody for at least more than half the year. So it's quite possible that no one could claim the child.

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Originally Posted by Skylertrip

The concern isn't this year and obviously he won't be residing with me and I guess that's where I'm not understanding. It says that the person with whom the child resides and received over half of his support can claim him but his over half of his support next year comes from myself and he still doesn't reside with me does that give myself a chance to claim him as my dependent. It doesn't clearly state possibilities with different circumstances. I guess I should have taken this issue to a tax professional instead of on-line. I was curious and I bit way more off than I can chew when it comes to all of your responses. Sorry for wasting you time.

The Law is clear: "... "THE CHILD MUST HAVE LIVED WITH THE TAXPAYER FOR AT LEAST HALF OF THE TAX YEAR... "

Re-read what I posted.

If he doesn't live with you for at least half of the tax year, you can't claim him - that's this year, next year and until he's 18.