- quote -

I believe a lot of thought went behind the rule. Your
client claimed one dependent child for 2003 and is eligible
for a $1000 child tax credit ($800 in advance and $200 with
her tax return). What's wrong with that?

Her former spouse is claiming one dependent and is eligible
for a $1000 child tax credit. What's wrong with that?

Two eligible children are generating $2000 in credits and
the right amount is going to each parent.

--
Alan
http://taxtopics.net

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- quote -

It may be fishy, but that is what Congress told the IRS to
do for this.

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"Al Bundy" <postmaster[at]127.0.0.1> wrote:
- quote -

Just to confuse things even more.... I had a client with 2
children she claimed in 2002. In 2003 her former spouse
will claim one of the children. She received $800 from the
IRS this summer for child tax credit. In Taxwise she had to
subtract the $800 received for 2 children from her $1000
credit for one child. Somehow the congress didn't do a lot
of "thinking" before passing this credit.

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philmarti[at]aol.com (Phil Marti) wrote in news:10358v9n18akpf5
- quote -

Damn Phil! Your info prompted me to look for something
official official from the IRS and here it is (but you
already knew that). Thanks!!

http://www.irs.gov/newsroom/article/...120037,00.html

================================================== ===========
6. My ex-spouse and I alternate claiming our children as
dependents. I claimed them on my 2002 tax return and
received an advance payment check. Will my ex now have to
reduce the Child Tax Credit by the advance payment amount I
received?

No, a taxpayer subtracts only his or her advance payment
amount. In your case, your ex-spouse received no advance
payment and may claim up to the full credit amount of $1,000
per child on the 2003 return. Because you aren't claiming
the children, you cannot claim the Child Tax Credit for 2003
and the law says that you don't have to repay any of the
advance payment you received.

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Al Bundy <postmaster[at]127.0.0.1> writes:

- quote -

Yes

- quote -

You're missing nothing. Congress is missing common sense,
but this is hardly a newsflash.

Phil Marti
Topeka, KS

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- quote -

This is saying the government can put out 1400 for the total
CTC?

If one parent receives 400 then the other actually claims
the chid, the one claiming can still get 1000????!!!! Sounds
fishy. I MUST be missing something.

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- quote -

Whomever claims the exemption is entitled to the CTC. Any
advance payment stays with the taxpayer who received it, not
the child. Therefore, if a taxpayer claims the exemption and
did not receive any advance payment, the potential CTC is
$1000.

The EITC does not have a requirement that the qualifying
person be your dependent unless that person is a married
child. The EITC has a residency test that requires the
qualifying person to have lived with the taxpayer in the US
for more than half the year.

--
Alan
http://taxtopics.net

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"BILLW" <billw[at]twcny.rrs.com> writes:

- quote -

No, she gets it from the IRS. The advance payment affects
only the return of the person who got it. If you have one
child eligible for the credit in 2003 and didn't get an
advance payment, your child tax credit is $1,000. It
doesn't matter that someone else got a $400 check based on
the same child.

- quote -

EIC doesn't rely on dependency, only on residency.

Phil Marti
Topeka, KS

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- quote -

I disagree. In that case, SINCE the never-married parents
used a form 8332, they were bound by it. However, there was
no requirement for them to do so, and if they don't use the
form, then it plays no part and the traditional support test
governs.

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"A.G. Kalman" <glendale202-mtm[at]yahoo.com> wrote:
- quote -

Tks all, still a little cloudy and if child's mother wants
to claim the 2003 Child Tax Credit but the 400 was sent
early to my brother, can she get it from him? And on to the
big one, the EIC?

tks all

bw

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Herb Smith wrote:
- quote -

Yes, I forgot. King v Comm'r, 9/26/03.

--
Alan
http://taxtopics.net

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Vida Freeman wrote:
- quote -

Before I go searching for a ruling, here's what the IRS says
in their Pubs. Note that physical custody is a tie breaker.

Custody is usually determined by the terms of the most
recent decree of divorce or separate maintenance, or a later
custody decree. If there is no decree, use the written
separation agreement. If neither a decree nor agreement
establishes custody, then the parent who has the physical
custody of the child for the greater part of the year is
considered to have custody of the child. This also applies
if the validity of a decree or agreement awarding custody is
uncertain because of legal proceedings pending on the last
day of the calendar year.

--
Alan
http://taxtopics.net

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"Vida Freeman" <pippen[at]ix.netcom.com> writes:

- quote -

I was in your camp until I read the post you're responding
to, but I think we were both wrong. I haven't read beyond
Pub 17, but it clearly states that legal custody primes
anything else.

Phil Marti
Topeka, KS

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"A.G. Kalman" <glendale202-mtm[at]yahoo.com> wrote
- quote -

I do not agree with you on the definition of "custodial
parent". I believe the "custodial parent" is the one who
actually has PHYSICAL custody. That does not seem to be
what you mean. In this case the child lived with the mother
for 10 months of 2003 which would seem to indicate that she
could claim the dependency unless she released it to the
father.

Vida Freeman, EA

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"A.G. Kalman" <glendale202-mtm[at]yahoo.com> wrote:
- quote -

Alan - That rule changed this year. The non-custodial parent
must have a signed 8332 form (or equivalent) from the
custodial parent to claim the child. Actual support provided
is no longer the determing factor for never-married parents.
They are treated the same as divorced and separated parents
(per recent Tax Court decision, I believe).

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"BILLW" <billw[at]twcny.rrs.com> wrote:

- quote -

If the child lived with the mother for 10 months, she likely
provided MORE than 50% of total support. However, if your
brother has a court order giving him CUSTODY, then he is
"assumed" to be providing more than half the support (by
definition) and she cannot claim the child without a signed
8332 form from him to her. She HAS to attach this form to
her return.

If the BOTH claim the child, the IRS will send letters to
each of them, asking them to prove their claim. Based on
what you wrote, your brother should win - on tdhe basis of
the custody order. In any case, both returns will be delayed
unnecessarily.

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BILLW wrote:

- quote -

Correct. The custodial parent is the one with majority of
actual custody during the tax year.

Cheer$,
Harlan Lunsford, EA
Phenix City, AL

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BILLW wrote:

- quote -

The answer will depend upon whether your brother and the
child's mother were ever married or are married and
separated. A special rule exists for divorced or separated
parents. The custodial parent is deemed to have paid more
than half of the total support. The custodial parent is the
one granted custody by the court. If this is the case, the
exemption would belong to your brother. If they were never
married, then the exemption would go to the parent who
provided more than half of the child's total support for the
year.

--
Alan
http://taxtopics.net

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"BILLW" <billw[at]twcny.rrs.com> writes:

- quote -

Yes. She had custody most of the year whether there was a
court order or not.

Phil Marti
Topeka, KS

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My brother was awarded custody(with no child support) of his
10 yr. old daughter and has lived with him for 2 years, in
2003, his daughter lived with her mother for 10 months and
he supplied no child support. There was no court order,
just a friendly OK type thing.

The mother is claiming her daughter as a dependent since she
(daughter) meets the dependency tests.

Can she do this and my brother not allowed to claim?

tks all.

bill w

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