My son has decided to live with me full time. My ex doesn't seem to care. Can I claim my son on my taxes even though the: divorce papers say my ex gets to until son turns 18. If he challenges it, I can take him back for back child support for the year my son was living with me full time
Dustin’s answer: Claiming a dependent on your tax return is supposed to be based upon where that dependent lives and is depending upon someone. In theory you can claim him as a dependent, and the IRS would accept whomever claimed him first. If the dispute was risen with the IRS and he has court documents and you have proof of his residency, the IRS can make a decision, but as you stated you could hold weight over his head with future possible litigation. The benefits of claiming him as a dependent may not outweigh the headache that could be caused, but it all depends on what your ex would do. If he got it to IRS first or if he challenged it and won, you would not be happy regardless of what retaliation was available. In sum, you know your ex and what he would or would not do, the rest is risk assessment.
My wife & I have past due Indiana state income taxes! Can Indiana state garnish our SSN & Federal pension for payment?: SSN & fed civil service pension benefits are direct deposited into our one & only bank account. we own no home or other real estate, no 401Ks, IRAs, savings acct, or other tangible assets except personal property such as 2006 Chrysler t&c van and personal furniture. we rent a home!
Dustin’s answer: The state can work a collection action against your bank account. The best step is to try and enter a payment plan with them to stop collections. You can also attempt to go through their offer in compromise program to remove some of the interest and penalties depending on how the debt is structured. Ignoring it and waiting for collections is not the solution, stay ahead of it and see what options you have by contacting a professional.
Do we really need a will?:
We have one son, married, grandson on the way, no additional heirs.
Our son should get everything and serve as the executor anyway, right?
Dustin’s answer: Having a plan of what to do with your assets is not only good for you, but it also helps out your beneficiaries as well. It provides answers to unknowns and gives guidance when you are no longer there to do so. I believe that there should at least be a will, as a more detailed estate plan would be best.