Nj Tax Question About Claiming Kids and Alimony After Divorce

Well, in California, spousal support and child support are not taxable and therefore not reportable as income. I don't know why she would want to pay taxes on something that's not taxable.
Also, the laws may be different in different states. For instance, you may not need to declare income under a certain amount because it wouldn't be taxable anyway.
She should contact the IRS. They can answer her federal questions. I just popped into an H&R Block office one day and asked about the state stuff. The guy happily answered my question about the state info for free.

It sounds like this guy is trying to make up the rules to benefit himself. She should look carefully at her divorce agreement and ask tax professionals to help her sort this out. If it's her year to claim, it's her year.

Is this for NJ state returns? Cause I don't know anything about that, but I know in MO they usually are supposed to reflect your federal returns. I know that according to federal laws it states that dependents are claimed based on who the child lived with for more then 50% of the time. If both parents have joint custody then it is who paid for more then 50% of their expenses and then if this requirement doesn't match then I believe there is something about the person who will benefit the most (i.e. the person who will owe the most in taxes at the end of the return) gets to claim them (which is probably where he is getting this idea from). However, I believe a divorce decree trumps all of that. Alimony and even child support are considered part of her taxable income (I had a friend who actually stopped qualifying for her daycare subsidy once she added in her child support payments from the dad). Since I doubt she was paying taxes on the alimony throughout the year, she will probably actually be at a larger advantage claiming them anyway, which would give her the federal rights to claim them. But, again I'm pretty sure that the divorce decree trumps all of that anyway and she gets to claim them.

I would suggest she look at the IRS website for claiming a dependent or talk to a local tax agent about the matter before she just lets him claim them.

Updated

Is this for NJ state returns? Cause I don't know anything about that, but I know in MO they usually are supposed to reflect your federal returns. I know that according to federal laws it states that dependents are claimed based on who the child lived with for more then 50% of the time. If both parents have joint custody then it is who paid for more then 50% of their expenses and then if this requirement doesn't match then I believe there is something about the person who will benefit the most (i.e. the person who will owe the most in taxes at the end of the return) gets to claim them (which is probably where he is getting this idea from). However, I believe a divorce decree trumps all of that. Alimony and even child support are considered part of her taxable income (I had a friend who actually stopped qualifying for her daycare subsidy once she added in her child support payments from the dad). Since I doubt she was paying taxes on the alimony throughout the year, she will probably actually be at a larger advantage claiming them anyway, which would give her the federal rights to claim them. But, again I'm pretty sure that the divorce decree trumps all of that anyway and she gets to claim them.

I would suggest she look at the IRS website for claiming a dependent or talk to a local tax agent about the matter before she just lets him claim them.

It sounds as though he isn't factoring in alimony. Maybe he doesn't know that alimony is considered a taxable income for the recipient. If he is under the impression that she has gross earnings of $9,000 then he is probably thinking that she doesn't even need to file taxes. The minimum income for the 2010 tax year is $9,350 (single) and $12,050 (head of household). But if the decree indicates that she claims 2 children every other year or in even years or whatever then she claims (even though more money would probably be obtained by him claiming). Simple as that.

if the order says they alternate every other year, that's what they do. A client of ours couldnt claim his granddaughter last year even though she did not live with her mother for even one day, because the divorce order between his son and her was that they alternate every other year.

Are you asking about filing a federal return and/or a state return? From the sound of the numbers you posted, she should also be able to claim head of household possibly (depending on living status) - and EIC on federal.

She only gets alimony, not child support?

She needs to talk to her attorney who is the attorney on the case. He will know the laws that this was based on.

I believe the father is trying to get one over on her.

I believe that if she is required to file a tax return, she definitely can claim the children. If she is not required to file a tax return, then she might still be able to file one and receive the earned income credit for the children.

Both NJ and the IRS have phone #'s that she can call to get free advice on filing taxes.