So, we filed our taxes and got a rejection notice from the IRS, on the basis that someone else had already filed using one of our dependent's SSN (my step-daughter).

The order in-place with regards to this, is that they claim her as the dependent on alternating years. In the order, it states that the parent claiming the dependency must be current on child-support "through the tax year" in question and at the time of filing. My interpretation of this is that you have to have paid the child support due during the tax-year, and this year to the point of filing. Basically, you can't have any past-due support when you file. Tell me if you feel I am interpreting this wrong.

My wife received an e-mail from douche-bag supreme stating that he had claimed the dependent because my wife was not current for the entirety of the tax year. This is true, as we had fallen a little behind mid-year, but caught up in October and have been paying-in to the child support account 1 month in advance since Oct.

Now the second question I have is that he filed on my wife's year when there is no provision for this in the order. It states that he claims on odd-years and she claims on even-years. Nowhere in the single paragraph regarding this, is there any provision made for either parent to file on the other parent's year, even if the original parent wasn't able to claim the dependency due to being behind on support (which is not the case).

Monetarily, the difference on our return between getting the dependency or not, is equal to 5 months of support payments. So he gets a tax credit worth 5 months of child-support because we were late making our payment for a few months?
It wouldn't be the first time he has pulled a fast one and tried to claim that an order said something that it didn't. Are we in the right or does the bastard really get to take us for a ride when we do not owe this life-long scum-bag, ass-hole a single cent?

A Wisconsin lawyer would need to read the entire paragraph verbatim to give you any useful advice.

What is the lossed value from the deduction?  Is it worth it to hire a lawyer?

he has stolen from you.

get him

My understanding is they have to have custody or care for at least 6mo out of the year to claim.. Child support doesn't make a difference... Actual care for the dependent does..

Hire a lawyer? No.
The value of the deduction for us is a bit over $1k. Too much to just let it go, but a lawyer would eat it up before breakfast.
Our plan is to take it in and just have someone look at it and give an opinion. Many places will at least give you a consult without charging an arm and a leg. Gonna make a couple phone calls in the A.M.

In order to claim something like an EIC credit, you are correct, but simply claiming the dependency exemption isn't subject to those restrictions. Either parent can claim the dependent exemption, and it is something that is either mediated on or ordered, as in this case.

Yea I think this is right. The IRS doesn't give a flip what that state court order says. If you don't qualify under IRS rules for the exemption you don't qualify.

Well, I guess we'll see. Fwiw, Turbo Tax asks you if you had placement of the dependent for 50% of the year or not, and answering "no" as we did, it still allowed us to take the exemption that is in question. EIC is another story, as you cannot take that unless you had placement for greater than 50% of the year. Either way, it is a joint custody/placement situation, and while her father does have her for more time than we do, we have had no problem claiming the exemption in previous years that we were allowed, per the mediated agreement.
H&R Block did our taxes in some previous years, and they never had issue with this either.

The IRS does not care about what a state court order says.  They only care when a child is claimed twice. The first parent to file their taxes usually wins with the IRS.

 

Sounds like he filed a false tax return, and that is a Federal Felony. See if there is an IRS tip line and maybe you can get a reward too boot.

BTW who files tax returns in January other than Felix Unger? I still do not even have all my forms yet.

My understanding is that the IRS has its own rules for the deduction and they don't give a shit what the court order says, whoever had the kid for the majority of the year gets it it under federal law.

OTOH if the ex is in the habit of violating the court order then you need to prepare to hit him with motion of contempt or it ain't gonna stop.

 

I had this happen with my ex once. I had to submit my taxes via snail mail and had to include the divorce agreement showing I was entitled to claim the exemption that year. My accountant filed it for me, I believe there may have been an additional form to fill out as well. It wasn't a huge deal just annoying and took longer than usual to receive my returns.

I would not even consider getting in the sights of the IRS for a grand.

He might be right, but I would interpret it to mean that you were caught up on or before 12/31 of the tax year being claimed. I could see his stance if you only caught up on or after the new year, but not if you caught up before the new tax year started as you would have incurred the expenses in the tax year the dependent was claimed. Either way, you will spend more than 1k getting it straightened out.

Who drafted the language? It was poorly done. Maybe they can interpret for you?

I took a stack of IRS form 8332, prefilled for my ex who was the custodial parent dated for every other year and had her sign them all... after that, I got my every-other-year deduction like clockwork.