I received money from a QDRO/divorce. I used $20,000 of this for downpayment on primary residence. Tax credit?
I paid taxes on the entire amount and consequently paid the $20,000 downpayment on my latest residence/primary residence. If there is a credit or something for this, what form/s would I use and where on earth could I find more information on this?Thanks!
Answers: In USA, you don't get a excise credit for putting money down on a house - only for mortgage interest and tangible estate taxes once you begin making mortgage payments and you'll gain a 1098 form showing how much you can claim each year
Court ordered payments from a qualified domestic relations directive to a spouse or former spouse is generally taxable to you so you be correct in paying taxes on the entire distribution.
One of your option upon receipt of the funds be a tax-free rollover to a traditional IRA or to an eligible employer plan. Apparently, given your use of the funds for the down payment on your home, you elected not to use the tax-free rollover provision.
If your former spouse (the plan participant) be born before 2 Jan 1936, a distribution to you of your entire share of the benefits may be eligible for special averaging, provided you gather round certain test. If the distribution qualifies you may use Form 4972 to claim the 10-year averaging, and possibly the 20% means gain election. If your former spouse be born after 1 Jan 1936, you may NOT elect income averaging or capital gain treatment.
Hope this help!
When you included the QDRO in your income, did you own to pay a 10% cost because you didn't roll it to an IRA?
If yes, you *might* have an exception to paying the 10% cost on the first $10K used to buy a house.
Will I still take some money backbone?
In 2007 my husband was deployed so his money be tax free. We enjoy one child and I was wondering if we would still win some taxes back because I know you usually do if you hold a child?Answers: If you two combined made less than $35k, you will be eligible for the EIC for your dependent, even though his income is levy free. The EIC is a straight refund to you. Best Wishes!
Depends on what his income is. Get your info together and you if you or your spouse is stirring duty military and your combined adjusted gross income is smaller quantity than $54,000 can file for free at:
http://turbotax.intuit.com/taxfreedom/
Heck, you can freshly fill out the info and see what the settlement comes up and it doesn't cost you anything and you don't have to transmit it to the IRS til you're all set.
Can my girlfriend's mother claim my stepdaughter if my girlfriend only work a couple months & not filing?
Answers: Would depend on the blood relationship or legal custody relationship between your girlfriends mother and your step daughter.
you can't just randomly claim a child because no one else happens to be claiming them this year.
I don't even think a grandmother can claim a grandchild without legal custody.
It depends on where everybody lived.
Situation 1. Your girlfriend and daughter lived with her mother more than 6 months of the year. Then the daughter is a qualifying child to both your girlfriend and her mother and either once can claim her as a qualifying child.
Situation 2. Your girlfriend and daughter didn't live with her mother for more than 6 months and your girlfriend made LESS than $3400 and didn't support herself, then your girlfriend is a depenendt herself and can't have dependents of her own...at that point, the daughter is up for grabs to the taxpayer who can show that they provided more than half of her total support. That taxpayer can claim the child as a "qualifiyng relative." (If no taxpayer paid more than 50%, but several did together, they can use the multiple support form to let one taxpayer claim the dependent.)
A QR is not as good as a QC. A qualifying relative gets you a $3400 exemption (less income, less tax.) A qualifying child gets you child tax credit and EIC.