Discussion Club Moderator<br>Elite Member
- Oct 30, 2000
I know a guy that was married with 2 kids, 1 house, 1 wife, all the good stuffs.
Now he is divorced, live in an apartment, his 2 kids are with his ex, he is paying child support for those 2 kids but no alimony.
All he has now is his salary, his interest payment from a bank (from CD and savings), and Health Saving Account.
Can he do anything to maximize his tax return/minimize his tax? He can not claim his kids as dependents, right? TIA.
Child support/dependents depends on the agreement with the custodial parent.
It might be best to talk to the ex to determine which may end up better.
If he claims the kids he may get a larger refund delta than if she claims the kids.
IF so, he can provide to her what she lost as a delta and he may come out a few $$ more.
That requires cooperation and her opening up her return to him to see what the impact of the kids have on her return.
Or being that there are two, each gets one to claim.
But under what you described; there is nothing he can do to help himself at this point.