child custody tax question

AskTaxGuru.com Junior Member, madawg22, asked:

I got custody of my son in August of 2010. My X is telling me that by claiming him I am violating the IRS rule since I did not have him for more than 1/2 of the year. My tax person stated that this is not true and that I did not violate anything. My custody paper work does not identify who claims who, just who has custody. Did I do something wrong and is my tax person wrong?

Should I ammend my tax claim for 2010 and allow my X to claim the son? I just want to do the right thing. Thanks

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Alimony

AskTaxGuru.com Junior Member, lhall700, asked:

My question is about Alimony, I am court ordered to pay my ex-wife $925.00 a month in Alimony. It is split up like this; I send her a check for $500.00 and sent a check of $425.00 to the federal bankruptcy courts. Even though we were both responsible for the bankruptcy the judge order me to pay the bankruptcy as part of my alimony. So do I file my alimony as $925.00 per month on my federal return or do I just claim the $500.00 a month that she receives.

No one here seems to be able to answer my question so I am going to post what two different tax agencys told me.

Dear TaxACT(R) Customer:
If your divorce decree recognizes the bankruptcy payment as alimony, then you should include the whole amount paid for alimony on your tax return.

Taxaid answer:
If your divorce decree, and the court, designates that you pay alimony to your ex of $925, then that is what you can deduct. Apparently because of the bankruptcy proceedings the court ordered that you pay $425 of your wife's alimony directly to the court to assure payments on HER share of the bankruptcy.

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Business Deductions?

AskTaxGuru.com Junior Member, brownpurse182@yahoo.com, asked:

January 1, 2011, I purchased 50% of an S-Corporation; thereby creating a two owner S-Corp. I recently discovered that my business partner failed to separate personal expenses from the previous year’s tax returns (nonemployee children on business cell phone plan and on business fuel cards) , and allowed one employee's family (family not employed with Corporation) to obtain cell phones through the Corporation; yet claimed the entire year-to-date cost of the cell phone bill as a business expense. Please advise as to what the repercussions of his actions can bring.

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What is Schedule C-EZ and which Taxpayers are eligible to use this Form?

Per the IRS Tax Code, "the Schedule C-EZ, Net Profit from Business (Sole Proprietorship), is the simplified version of Schedule C, Profit or Loss from Business (Sole Proprietorship)."

Using Schedule C-EZ can save considerable time, reduce the paperwork burden associated with the Filing of the Long Schedule C Form and Professional Filing fees associated with Schedule C. But the IRS has strict rules regarding who can use this Short Schedule C-EZ!

Taxpayers may be eligible to use the abbreviated Schedule C-EZ instead of the longer Schedule C when reporting business income and expenses on your Form 1040 federal income tax return.

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Why does the IRS want taxpayers to use a 1040-V payment voucher?

According to the IRS, "the Form 1040-V, Payment Voucher, is part of the modernization process. Thus, if taxpayers have a balance due on your tax return, using the payment voucher will help the IRS process that payment more accurately and efficiently."

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Do Taxpayers need to use the payment voucher if they owe taxes when filing their tax return?

According to the IRS, if Taxpayers have a tax liability, it is recommended that they send their tax return, payment voucher, and payment to the addresses indicated.

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Do California LLC have to pay any filing fees in 2010?

A LLC formed in California or doing business in California has an Annual Tax payment due, for the amount of $800, on the 15th day of the 4th month from the beginning of the tax year.

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