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

[cnelk]

To the OP

I went through this 15 years ago.

You mentioned ‘kids’ - you can each claim one (since there more than one)

You can still get HoH claiming one (Ex can do whatever she wants)

When it gets tricky is when the youngest is the only one being claimed.
We alternated years when that went into effect.

 

[eddielasvegas]

Since you said you're going to get hammered in taxes this year, and maybe you are not aware of this, make sure you are paying enough in taxes to avoid an underpayment penalty. Might be a good idea to make a Q3 and Q4 estimated tax payment. IRS link HERE.

Q3 is over in 6 days so time is short. There is plenty of time for Q4 payments which starts Oct. 1. Very easy to do as they can be made day of, or scheduled for a future date.

You should also make estimated state tax payments should you live in a state with an income tax.

Good luck,


Eddie

 

[Fatcamp]

Not to the IRS, which is all that matters here.

The only way the IRS is going to know if you had the kids 50.025% of the year is if you make an issue out of it. That will cause issues between you and the ex. Pick your fights, this one is stupid.

 

[DrBeetleKill]

Definitely speak with CPA. If you have some cash or the would like to invest in real estate, you might be able to do the short term rental for a big write off. A CPA could run estimates on the tax savings vs the cash needed for the investment.