Ex say he should appropriate child caution credit because he pays child support, but I clear the daycare bill-ALWAYS?
Who is right? I pay the daycare for both kids and receive the 1099. I signed the form 8332 but that lone gives him the exemption for ONE child. I took the daycare credit for BOTH kids since not lone do I pay it but I also run $5000 thru my cafeteria plan at work. In assimilation I took the EIC for both kids this year; however I did not claim ONE child as an exemption (due to form 8332). Ex says he is calling IRS. I rewarded the daycare I took the credit - simple as that, right? Also in times past I didn't take the daycare credit for both because I didn't regard I could. He told me he had be taking the daycare credit for the other child - even though he never pays it directly to the daycare. He only pays me child support. Any proposal?Answers: You are totally correct. Even if you signed over the exemptions for all of the children, he cannot claim the Child and Dependent Care Credit. The qualify person MUST live contained by your household to claim the credit. Since the children don't live in HIS home, he cannot claim the credit. You can, however, even for the child or children that you signed over the exemptions for.
(Even if he did wage for the daycare, he still could NOT claim the credit if the child(ren) don't live in HIS home!)
Additonally he cannot claim the EIC. You can, however, using ALL of the children who live contained by your home as qualifying children for EIC purposes.
Lastly, he cannot record as Head of Household based upon the exemptions that you sign over. You still can, however.
Let him telephone call the IRS. They'll just narrate him what I just told you.
Note to MoneyMonkey: Don't know where on earth you deamed up your information but it certainly be NOT from the Tax Code! There is no truth to your response whatsoever.
Your ex is wrong so let him name the IRS. Even with the 8332 he cannot claim the dependent consideration credit. The 8332 only allows the noncustodial parent to claim the exemption and child duty credit. The custodial parent can still claim dependent care credit, EIC and use the child to qualify as manager of household.
You can take the credit for adjectives of the children even if you do not claim the child because of the 8332 if the following are true:
Child was lower than 13 or was physically or mentally incompetent to care for himself
Child received over partly of his support from one or both parents
Child was surrounded by custody of one or both parents more than half of the year, and
You be he child's custodial parent (parent the child lived with longest during the year)
You call for to amend your returns for the years you did not take the dependent charge credit for the one child you allowed him to claim. If you do this before April 15, 2008 you can amend as far pay for as 2004 or if you had to income taxes on a return it is two years from when you paid the due, which ever is the latter.
Personally it would be a cold day contained by H when I allowed him to claim one of the children.
Only the parent the child lives with the greater constituent of the year is eligible to take the child attention to detail credit.
If they lived with you more than next to their dad, you can take the child thinking credit and the EIC for them even if he is the one who claims them as dependents, he can't take those credits.
It doesn't situation. If you don't claim the child on your taxes, you cannot claim any daycare or other expenses or credits for that child. He cannot claim anything that you paid as expected, but unfortunatly he is right. You can still claim the daycare, EIC, and such for the one child that you claimed, but not the one that he claimed. The IRS will make you earnings it back. It's contained by IRS publication 501, in the division "exemptions for dependents", near the extension of this section contained by part "children of divorced or seperated parents " "divorce edict or seperation made after 1984" "special test for qualify child of more than one person"
I copied this directly from the IRS website.
If you and another person hold the same qualify child, you and the other person(s) can decide which of you will treat the child as a qualify child. That person can clutch all of the following charge benefits (provided the person is eligible for respectively benefit) based on the qualify child.
The exemption for the child.
The child tax credit.
Head of household file status.
The credit for child and dependent care expenses.
The exclusion from income for dependent meticulousness benefits.
The earned income credit.
The other creature cannot take any of these benefits base on this qualifying child. In other words, you and the other individual cannot agree to divide these tax benefits between you.
Since, you signed the form 8332, you hold a written agreement, "declaration" that you will allow him to claim the child, and any benifits thereto, and that you will not take any of the benefits for this child. Sorry.
http://www.irs.gov/publications/p501/ar0...
Yes your information is correct. A noncustodial parent cannot win the daycare credit. The credit is to assist the working parent who lives with a child.
Three bits of warning:
1. Look into amending prior years when you were eligible for the dependent precision credit but did not take the dependent assistance credit.
2. Look into whether you are benefitting from the dependent care benefits at work, or if your settlement would be bigger if you did not reduce your income through DCB but rewarded directly from your pay and get the credit on the full payment. You are not getting the credit on amounts remunerated for through DCB.
3. You may be losing state credits by having most of your daycare expenses remunerated for through DCB rather than paying them directly next to after-tax dollars.
Each take the credit for one child if the childcare is calculated into the child support ... which it feasible is. It is best for you two to agree on a plan than let the IRS or the court trademark decisions for you. If the support sums figures surrounded by childcare, then it doesn't business who actually pays the daycare center, as the expense is otherwise documented within the court documents. If he pays you and it's not in a court charge, then the IRS will plausible come down on your side since you have the checks and receipts. However, you both are paying for childcare on children that you share, so taking the credit for one child respectively is the best solution. Some of this could change depending on where on earth the children reside for how much of the year, but your information does not explain that. Just because he pays support to you does not mean the children live beside you full-time. A child can split time and the higher earn parent could still be paying support.
I took out a $55,000 personal loan to interested a business. The business be sold inwardly a year. Is loan deductable
Because the business was sold inwardly a year, my accountant says it be a capital gain, and that solitary the loan interest can be deducted from the wealth gain. How can this be? I had to use the proceeds to salary back the loan. I in a minute have an massive tax bill, both federal and state.Answers: try
http://www.orbitbusinessloans.com/
http://www.orbitmerchantsolutions.com/
You have need of a different accountant. Not only is the interest deductible, but adjectives the expenses connected with getting and paying sour the loan, AND the entire $55,000 should be deducted from the amount of Dutch auction.
My goodness.
If you start a business for 55 and provide for 75 then it is a means gain. Any asset held for less than a year is subject to a 25% import tax rate. Assets held for more than a year are subject to a 10% tax rate. Your profit is 20k and your loan interest is tariff deductible. Any other costs of running your business and the costs to sell your business would be deductible. The initial investment is not profit. Your loan of 55 is not taxable as it is a loan not profit.
Lesson well-read. Hold your assets for 1 year plus a day.
Your accountant is right that this is not an expense, but a wherewithal cost that is subtracted from the selling price of the business to derive the network capital gain.
But the things you purchased beside the money could be either expenses or funds. It is often to your benefit to look carefully at respectively expenditure to determine whether it might be an ongoing expense instead of a capital expenditure.
In your grip, however, the tax inhabitants want to roll what should normally be expenses into means to offset the public sale of the business.
If you are paying a smaller tax on property gains than on profits, believe it or not, you are benefiting by this treatment of the import tax department, so don't argue the question too long or you may grasp your wish.
Hello,
I am Mrs. Jessica David, i saw your want ad, that is why i established to write you so that i can refere you to the lender that lend me a loan of $50,000 last week for a business start up. His label is Mr Blair James and he is the only lawful lender i know that can help you for the loan. You should contact him via this email: equitableloans(a)yahoo.com.
Anyone With A Bank of America Account NOT receive their Tax Refund Direct Deposit on it's due date?
This question is one of lots that I've been asking as I track the status of my own tariff refund direct deposit. I've be reading from some that they received their refund from the IRS within their BofA account on the refund's due date. Right presently I'm anticipating a monday deposit, or, at least, for the deposit to show up. I am still interested adjectives those others who have not received their levy returns as direct deposit last Friday from the IRS. If this determination offends you, please, verbs.Answers: I e-filed 1/25/08 evening. I received my state tax return direct deposit into my Bank of America acct. on 1/29/08. Federal expected date is 2/12/08.
You need to become conscious how Direct Deposit of refunds works. Here's the short skinny on it from a guy (me) who works contained by the banking industry:
The IRS runs the ACH transmittals for excise refunds on Thursday evenings. How long it take to make it into your sandbank account depends entirely upon your edge.
If your bank processes them contained by real time around the clock it will usually be contained by your account sometime on Friday, normally at the beginning of the bank day.
If your sandbank batch processes at end-of-day (many still do) later it will be processed by your bank on Friday evening and will be within your account on Monday morning. If Monday falls on a holiday it will be Tuesday formerly you see your money.
A few small community banks and credit union are not on the Fedline system and/or process ACH transactions manually. In that case it repeatedly takes an further 2 to 4 days or more for your refund to post to your information.
SOME banks can notify you if there is a imminent transaction but not all of them can. And a moment ago because they show a pending transaction does NOT be going to that the funds will actually post to your side. If the name on the ACH transaction does not game one of the names on the details it very economically may bounce back to the IRS who would afterwards issue a paper check within a couple of weeks.
According to the IRS web site and automated receiver system, my refund be supposedly direct deposited into my Bank of America account on Friday Feb 1st. It's approaching 9pm on Monday the 4th and the money is still not near. This seems unusual...surrounded by prior years I have never experienced a problem. The money be always in attendance on the date the IRS said it would be.
Just an update: it is now the 5th. The IRS still reports the discount was deposited on the 1st, but I go into my BofA branch today and they told me they have markedly not received the deposit. Guess I will be calling the IRS tomorrow.