claiming children on taxes

[k1972]

My husband and I filed for divorce last month and we are working on the parenting plan. We have 2 children. He wants to be able to claim both children on the taxes every year. He makes twice what I make and says it makes more sense for him to claim the kids and then we can equally divide whatever return he gets. I make less than 25,000 a year and he makes a little over 50,000 a year. Would his plan be a wise choice? I know that whatever we agree on should be in writing. If I decide to go this route can I also request to see his tax return every year to make sure that he's being honest? I'm thinking about having each of us claim 1 child. What he's trying to get at is getting a bigger return or having to pay less since he makes more money.

 

[irish223]

I really don't know, but I would suggest that you each figure your taxes based on the possible scenarios. That is, figure your own taxes using 0 dependents, then again using 1 dependent. Have your husband do the same using 2 dependents and 1 dependent. Then compare the benefits for each of you.

Of course, if he gets 2 dependents, but still has to pay, then you won't see any refund. Depending on whether or not your state's guidelines calculate child support on gross or net income, you may actually lose money if there is no refund.

Also consider that if either income changes in the future, you may wish that you hadn't given up your dependent exemption.

You can request that his tax returns be provided yearly, though that may not be granted. If his income changes from year to year, as in sales positions, it may be ordered. Otherwise, it doesn't hurt to ask.

 

[Duranie]

Also why don't you 2 agree to each claim one? Is that a fair compromise?

 

[k1972]

Thank you for the advice. I'll have to do some figuring. I do think that claiming one each is more than fair. That's probably what we will end up doing. Thank you again!