Tax man a-comin' ... any tips?

A

aftriathlete

WKR
Joined
Jan 18, 2022
Messages
468
Recently divorced and we alternate years we claim the kids as dependents. So this tax year I will not claim the kids as dependents, which means first time for two major tax changes in my adult life: no dependents, and no Married Filing Jointly or Head of Household tax brackets.

I'm going to get hammered on federal taxes and am considering ways I can limit that tax liability in the next 3 months before the end of the tax year but figured I'd ask here for any good ideas that can make a difference in the short term. I bought a house this year, so the mortgage interest deduction will help significantly. I considered shifting my Roth TSP contributions over to conventional for the rest of the year which means they won't be taxed now, but it's not worth it for the fact that I'll have to pay taxes on both the contributions and the growth 20 years from now, which would far exceed what I would save on taxes this year by doing so (conceivably by 10x or more).
 
HUNT JR said:
You could still potentially claim HOH filing status depending on the circumstances of custody and support.
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I was hoping that was true, but I don't think I can in equal custody and the other parent is claiming the kids as dependents. I found this online saying that it's all or nothing, the child tax credits, the HoH filing status, it's all a package.

From Google AI: "One parent must claim the child for all the child-related tax benefits—such as the child tax credit, the earned income credit, and the HoH filing status. A parent cannot claim one benefit while the other parent claims another for the same child."
 
Hard to say without all the details. I'd either post your full financials over at bogleheads.org or hire a good CPA (they gotta be good).

AFA Roth versus traditional - if your tax rate is the same now and in retirement they are mathematically equivalent. Paying the taxes up front versus later doesn't matter.
 
Keep the kids ONE MORE NIGHT than your spouse over the year and HOH is right there for you to claim.

What you can claim as custodial parent (with more than half the nights. One extra night does legally count!):​

  • Head of Household (HOH) status (if you paid more than half the cost of your home).
  • Earned Income Credit (EIC), if you otherwise qualify.
  • Child and Dependent Care Credit, if you paid for childcare so you could work.
  • Exclusion for dependent care benefits (if offered by your employer).
 
Mike Islander said:
Keep the kids ONE MORE NIGHT than your spouse over the year and HOH is right there for you to claim.

What you can claim as custodial parent (with more than half the nights. One extra night does legally count!):​

  • Head of Household (HOH) status (if you paid more than half the cost of your home).
  • Earned Income Credit (EIC), if you otherwise qualify.
  • Child and Dependent Care Credit, if you paid for childcare so you could work.
  • Exclusion for dependent care benefits (if offered by your employer).
Click to expand...
Doing so could be in violation of the divorce decree. If it specifically states alternating years to claim the child I wouldn’t press the issue, especially if it’s gonna knock her out of any money. My divorce was wrote the same way, and for the last 15 years we’ve rotated. I’ve probably kept my daughter 60% of the time over that period of time.
 
Pickettpuncher said:
Doing so could be in violation of the divorce decree. If it specifically states alternating years to claim the child I wouldn’t press the issue, especially if it’s gonna knock her out of any money. My divorce was wrote the same way, and for the last 15 years we’ve rotated. I’ve probably kept my daughter 60% of the time over that period of time.
Click to expand...

It has no affect on her at all. She can claim the dependents status per OP agreement only. Since OP has had kids under the legal IRS definition of majority, he gets all the perks of head of household and the others I mention. Spouce cannot legally claim any of those. So each get exactly what they legally earned; no harm and no affect on the OP spouce by taking what OP is legally due.
 
aftriathlete said:
I was hoping that was true, but I don't think I can in equal custody and the other parent is claiming the kids as dependents. I found this online saying that it's all or nothing, the child tax credits, the HoH filing status, it's all a package.

From Google AI: "One parent must claim the child for all the child-related tax benefits—such as the child tax credit, the earned income credit, and the HoH filing status. A parent cannot claim one benefit while the other parent claims another for the same child."
Click to expand...


That's how we did it. Almost done with that nonsense.

ETA: You need to talk to a competent tax person. Our situation was different than yours as I/we remarried and had other kids in the mix. Not easy, I feel for you.
 
Mike Islander said:
Keep the kids ONE MORE NIGHT than your spouse over the year and HOH is right there for you to claim.

What you can claim as custodial parent (with more than half the nights. One extra night does legally count!):​

  • Head of Household (HOH) status (if you paid more than half the cost of your home).
  • Earned Income Credit (EIC), if you otherwise qualify.
  • Child and Dependent Care Credit, if you paid for childcare so you could work.
  • Exclusion for dependent care benefits (if offered by your employer).
Click to expand...


😆

That's going to make next year awful tough. Coparenting is more than math.
 
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