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One thing nobody's mentioned yet is that while you can't deduct child support, if you're paying for your children's medical expenses or qualified education expenses directly (not through support payments), those might qualify for certain tax benefits even if you don't claim them as dependents. Also, check your divorce decree about who claims the kids. Sometimes they alternate years or split the kids between parents. If there's nothing specified, then yes, typically the custodial parent claims them, but there might be wiggle room you don't know about.
That's actually really helpful! Some of my payments go directly to their health insurance and not to my ex. Would that part be deductible? And our decree just says she gets to claim them as dependents since they live with her over 50% of the time.
If you're paying for health insurance directly (not through your employer but actually writing separate checks for their coverage), you might be able to include that amount as a medical expense deduction if you itemize and your total medical expenses exceed 7.5% of your AGI. It's not a direct deduction for child support, but it could help. Regarding your decree saying she claims them - that's pretty standard unfortunately. Your best bet might be to see if she'd be willing to give you Form 8332 for one child in alternating years, which some co-parents do to make things more equitable. Sometimes offering to split any additional refund can help persuade them.
Hey, not sure if this helps but I was in a similar situation and found that even though I couldn't deduct child support, I was able to contribute to a 529 college savings plan for my kids which gave me a state tax deduction (depends on your state though). Might be worth looking into since it's something that benefits your kids but also gives you some tax advantage.
This is actually really smart. I do this too - my state gives a deduction up to $4000 per year for 529 contributions. It's not federal but still saves me about $200 in state taxes while saving for my kid's college.
My two cents on your withholding situation: the IRS doesn't care if your employer didn't take out enough federal tax. That's between you and your employer. The IRS just wants their money one way or another. Go ahead and file your taxes accurately based on what's on your W-2. If you owe, you owe. The most important thing is to file on time even if you can't pay right away - the penalty for not filing is WAY worse than the penalty for not paying. If you can't pay in full, apply for a payment plan with the IRS. They're actually pretty reasonable about this stuff as long as you're proactive and honest.
Do you know if there's a minimum amount you need to owe before you can get on a payment plan? I might owe around $800 and am worried I'll have to pay it all at once.
You can get on a payment plan for any amount you owe, but the process is different depending on how much. If you owe less than $50,000, you can apply online through the IRS website using their Online Payment Agreement tool. For around $800, you could qualify for what they call a short-term payment plan (120 days or less) with no setup fee. If you need longer, they have long-term plans too, but those have setup fees. Interest and penalties continue to accrue until you pay in full, but they're relatively low compared to credit card interest. Just make sure you apply as soon as you file your return!
One thing nobody has mentioned - check your W-2 box 2 (Federal income tax withheld) against your paystubs! I had a situation where my W-2 showed like half the federal tax that was actually withheld from my checks. Added everything up and realized my employer made a mistake on the W-2 itself. Your employer can issue a corrected W-2 (called a W-2c) if there's a legitimate error. Don't file with incorrect info if the W-2 itself is wrong!
anyone else confused why OP is stressing about doctor taxes when they haven't even finished high school yet? lol you got like 12+ years before this is even relevant. 4 years college + 4 years med school + 4-7 years residency/fellowship before you make "real doctor money" tax code will change like 6 times before then anyway. focus on getting good grades first buddy š
Harsh but true. Plus by the time you're making attending physician salary, you'll also have around $300k in student loans to pay off. Your concern shouldn't be the tax bracket but how to manage that debt efficiently.
Something nobody's mentioned yet - doctors have lots of tax deductions most people don't get! My wife's a pulmonologist and she deducts: - Medical malpractice insurance - Continuing education costs - Medical journal subscriptions - Home office expenses - Professional association dues - Licensing fees Plus if you work at multiple hospitals you can deduct mileage between them. All this can easily save you $15-20k in taxes annually! Don't focus just on tax brackets - the deductions matter a ton for professionals.
Another option you might consider is going to a local Taxpayer Assistance Center. You need to make an appointment, but they can pull up your records and help you figure out what you need to file. I did this last year for my 2020 return and the person I spoke with was surprisingly helpful. For the appointment, call 844-545-5640. They book up fast though, so call early in the morning.
Do they charge for this service? I'm already going to be paying a lot in back taxes so trying to save wherever I can.
The Taxpayer Assistance Centers are completely free - they're run by the IRS. No charge at all for the service. They won't prepare your return for you, but they can answer questions, help you access your tax records, and point you toward free filing options.
You might qualify for the IRS Fresh Start program if this is your first time having tax troubles. I was in a similar situation with unfiled returns from the pandemic years and ended up qualifying for penalty abatement, which saved me over $1,000.
Fresh Start isn't really a program, it's just a collection of different relief options. But you're right about first-time penalty abatement! That's what helped me with my late 2020 return. You just have to call and ask for it specifically.
Jenna Sloan
One thing to consider is pulling your Wage and Income transcripts too, not just your Return transcripts. This will show all W-2s and 1099s reported under your SSN, which can help you recreate returns for any unfiled years. If your ex didn't file in some years, you'll need this info to file correctly. Also, since you mentioned being married filing jointly previously, be aware that you're both equally liable for any joint returns - even if he was the one who prepared them. If there are unfiled years or issues with past returns, you might want to look into Innocent Spouse Relief if he did anything shady on those returns.
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Kingston Bellamy
ā¢Thank you for this advice. I hadn't even thought about Innocent Spouse Relief. Is that difficult to qualify for? I'm really worried about what I might find when I get these transcripts.
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Jenna Sloan
ā¢Innocent Spouse Relief has specific requirements, but it's definitely worth exploring if you discover any serious issues on joint returns. It's most applicable when one spouse did something wrong (like underreporting income) without the other spouse's knowledge. The key factors are whether you knew about the underreporting and whether it would be unfair to hold you responsible. Documentation is extremely important - keep those texts where he claimed to handle the taxes. The IRS has Form 8857 for requesting this relief, but I'd recommend consulting with a tax professional before filing it, as the process can be complex.
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Christian Burns
While waiting for Friday to call the IRS, you might want to check your credit report too. If the IRS filed liens for unpaid taxes from previous years, they would show up there. It's a quick way to see if there might be serious issues with unfiled/unpaid taxes.
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Sasha Reese
ā¢This is really smart advice. Tax liens can absolutely destroy your credit score too. I had a friend who didn't know her husband hadn't filed for 3 years, and the first she heard about it was when she got denied for a mortgage.
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