The Tax Preparation Blog

Question: “Income tax exemption: altered.”?

My original parenting plan says if my son’s dad is not current on child support that I can claim my son on my tax return. (we were to take turns). He had his supprt lowered (and is still not paying) My confusion is in the paperwork I got with the new amount , change in insurance responsibility, etc., It had a blank line where his attorney wrote “Change ITE.” I looked on the court public access online and it said, “Income tax exemption: altered.” Does anyone know what this means? something to do w/ filing taxes or how he got his payments lowered?. Nothing actually says I can’t claim my son. who do I call about finding out? wouldn’t something have to be given to me in writing if the rule was changed?

Answer: The custodial parent gets to claim the qualifying child when all of the rules are met by the custodial parent and the qualifying child to be claimed as a QC dependent.
Go to the IRS gov web site and use the search box for Publication 17 go to chapter 3
Qualifying Child
Residency Test Rule 3
Children of divorced or separated parents or parents who live apart. In most cases, because of the residency test, a child of divorced or separated parents is the qualifying child of the custodial parent. However, the child will be treated as the qualifying child of the noncustodial parent if all four of the following statements are true.
Custodial parent and noncustodial parent, The custodial parent is the parent with whom the child lived for the greater number of nights during the year. The other parent is the noncustodial parent.
Equal number of nights, If the child lived with each parent for an equal number of nights during the year, the custodial parent is the parent with the higher adjusted gross income.
You can click on the below related link for more information and examples.

1.The custodial parent signs a written declaration, discussed later, that he or she will not claim the child as a dependent for the year, and the noncustodial parent attaches this written declaration to his or her return. (If the decree or agreement went into effect after 1984 and before 2009, see Post-1984 and pre-2009 divorce decree or separation agreement , later. If the decree or agreement went into effect after 2008, see Post-2008 divorce decree or separation agreement , later.)
2.A pre-1985 decree of divorce or separate maintenance or written separation agreement that applies to 2009 states that the noncustodial parent can claim the child as a dependent, the decree or agreement was not changed after 1984 to say the noncustodial parent cannot claim the child as a dependent, and the noncustodial parent provides at least $600 for the child’s support during the year.
Custodial parent and noncustodial parent. The custodial parent is the parent with whom the child lived for the greater number of nights during the year. The other parent is the noncustodial parent.

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Question: Did H&R Block Rip me off?

I bought a house last year and thought it might be a good idea to have a ‘professional’ figure my property tax and mortgage tax deductions.

After I complied ALL the information for them, it took a matter of 7 min for them to put my numbers into their system. After it was all calculated, they told me to pay them $285!!!!!??? I about passed out. I told the agent that I NEVER would have used their services had I known it was going to cost that much! She just rolled her eyes and said it was a complex form because I itemized. I was then given two options.

1) pay now
2) have it taken out of my refund for a small $29.95 fee.

I feel I was totally ripped off: Get me in there, do a super quick data entry procedure, charge me an insane amount of money…for that kind of cash I’d at least like to get SOME kind of tax advice or a budget plan or a detailed walk through of what was being done. Nothing, just my taxes filed and sent out the door.

Am I being unreasonable?

Answer: You learned a lesson of not to use them again but it cost you $285 bucks. The good news is you can deduct their fee on next years return.

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