Q: Custody tax claim issue with ex in Texas; no child support due to 50/50 custody, and ex-wife claimed both kids against our verbal agreement. How do I resolve this?

A: I understand your frustration. It sounds like your verbal agreement with your ex-wife regarding claiming the children on taxes wasn’t honored, which can be incredibly frustrating.

Since your court order doesn’t specify who can claim the children, it’s best to consult with a tax professional to determine your next steps. They can help you understand your options, including whether you can file an amended return or address the situation with the IRS.

Moving forward, it may be helpful to modify your custody order to clearly address tax claims to avoid issues in the future.

Disclaimer: This response is for informational purposes only and does not constitute legal advice. Please consult an attorney for advice regarding your specific situation.

A: Legally, only one parent can claim a child as a dependent on that parent's individual federal income tax return. The IRS has Publication 504 which discussed this issue in depth: https://www.irs.gov/forms-pubs/about-publication-504

On a more practical note, I am familiar with situations where both parents have claimed their children as dependents after a divorce for years without a complaint by the IRS. I personally experienced this situation with my ex-spouse. For one tax year, the IRS sent a notice to each of us and we each submitted our information in support of our respective positions. The IRS took no action against either of us.

That is not to say that the IRS will take no action against you. Nor is it to say that the IRS always ignores it when both parents claim a child as a dependent.

A: It seems like you're facing a tough situation with your ex-wife not honoring your verbal agreement regarding the tax claims for your children. Since your court paperwork does not specify who claims the kids for taxes, this verbal agreement may not be legally binding. However, it's still important to address the situation promptly, as both parents cannot claim the same child in the same year, according to IRS rules.

The first step is to contact your ex-wife and try to resolve the matter directly. You can remind her of your verbal agreement and ask her to amend her tax return if possible. If she is unwilling to cooperate, you may need to file a claim with the IRS to resolve the issue. The IRS typically requires both parents to sign a form to confirm who is entitled to claim the children, especially in situations like this.

Since financial constraints are limiting your ability to seek legal help, you can look into low-cost or pro bono legal services in your area to guide you through the process. Additionally, you can contact the IRS for further guidance on how to make corrections or file an appeal if necessary. Taking these steps will help you ensure that the tax claim is corrected and prevent future issues.