My new partner is a student on very low income, she has two children with her ex partner, he pays her $650 per month for the two kids, by court order. He has told her these last three years that he will claim tax allowances on their two children plus her third child (who is not his natural child,) therefor making a tax claim on three kids in total. He said he would give her half the tax rebate if she allowed him to do this.
He has a good job as a manager.
The first year he gave her $300, the second year $nil, the third $150.
My question is can this be right? Can the tax rebates be so small as generate these very small annual amounts at 50% or has he been ripping her off?
Anyone help me here? She has asked me if she should allow him to claim again this year.
My ex and I alternate years for claiming our son. I see a substantial difference when it isn't my turn. I think she should stop letting his claim the kids and see the difference for herself. My guess is that claiming the children balances out his taxes so he doesn't owe. The guy is probably claiming 3 deductions, paying less taxes and keeping more of his money each check. He then claims the kids to balance it out. This is why she isn't getting anything. I think the guy is seriously ripping her off. (He has a good scam going there)
She also needs to be careful. Allowing someone to claim a child who is not theirs (third child), just to get a better refund, is committing tax fraud.
Posts: 5308 | Location: The Motor City | Registered: 06-03-02
