How to Amend Taxes?

Question

I have already received my return and stimulas package. and spent it all on bills. And I just found out that I have to Amend my taxes for 2007 because my ex husband claimed our daughter also. And I went to court over it and the judge gave it to him. So now I get to amend my taxes. (even though i am the primary caregiver for my child he just pays child support and maybe sees her twice a year) And yet he gets to claim her! So please help if you can.

Thanks!

Answer 1

"Who gets the child" is not that simple.  Judges and divorce decrees can allocate some things, but who the child lives with the most determines others.  Children bring 5 things to your tax return - and who the child lives with determines 3 of them, no matter what any judge or divorce decree or anything else says.

Things that the person who the child lives with the most gets:

1. Head of household filing status

2. Earned Income Credit

3. Child care credit (daycare credit)

Things that the person who the judge "gives the child to" gets:

1. Dependency exemption

2. Child tax credit

So if the judge gave your child to your ex, you still get the first three (assuming the child lives with you OVER half the time), which depending on your income, can be the most substantial.  But you will have to amend your return (by filing form 1040-X) to remove the last two.

Answer 2

So...the judge will hold you in contempt of court unless you sign the form 8332?  I'm surprised that the claim to the exemption wasn't spelled out in the original divorce decree.  (Keep in mind, the divorce decree couldn't make the exemption contingent on him actually paying child support.)

At any rate, you get to keep HOH status, child care credit and EIC if you have any of these.  He gets the exemption and child credit.

To amend, get form 1040X.  

On page 2, you got to line 26 and put 1 in column A, (1) in column B and 0 in column C.

When you get to the end of the section, you'll have $6800, ($3400) and $3400 in the three columns.  This becomes line 4 on the front.

You then go to the front.  You load column A form the 2nd page of your original tax return.  You use a dummy tax return to calculate and figure column C.  Then you take a calculator and go down column B line for line putting in whatever number makes A equal C.  Negative numbers go in parens.

Figure out the difference in tax and mail it in.  Send whatever money you can.  If you can pay the difference in 4 months wait for a bill and ask for an extension to pay.  If you can't pay that quickly, set up an installment agreement.  (Interest and penalties apply in both cases, but the agreement has a $105 setup fee.)

Your hubby may find that if he already filed without attaching a copy of the 8332 or a copy of the decree giving him the exemption, the IRS may *still* not let him claim the child.  As the non-custodial parent, he *had* to have this paperwork attached to his return.  At most it was to give him the $3400 exemption and the child tax credit/stimulus.

Answer 3

If there's a valid court order saying he can claim her, you're stuck with it, so file the amendment.  You most likely won't have to pay back the $300 for you if you got it with your rebate, but will have to pay back whatever you saved on your tax return by claiming her.

To amend your return you'll file form 1040X showing the changes.

Good luck

Answer 4

First of all you must confirm that the court order covered the 2007 tax year.  If the order covered 2007, you simply file an amended return.  If you had someone prepare your return you should go to them.  If not it may be a good idea to have someone help you with the amendment such as a tax professional.

Answer 5

You need help so call the I R S in your local phone book.  They will send you all the info U need.  Also there may be help in your city for those who can not pay for such things.  Contact Government Agencies toward that end.