Parents of divorced dependent children may face extra challenges when it comes to preparing their income taxes.
H&R Block Senior Tax Advisor Michelle Bachtel says that’s one of the more common questions she gets. Generally she says the IRS says whoever the child remains with the majority of the year is the person who gets the claim.
“Sometimes though divorce decrees will grant the non-custodial parent the claim,” Bachtel said. “That’s when you hear people refer to splitting an exemption. The custodial parent is still entitled to some credits, like the Earned Income Tax Credit, where the non-custodial parent who gets the exemption is entitled to the child tax credit. It is possible to split an exemption, but there are some very strict rules for doing that.”
Some taxpayers in our area may be in for a surprise when they file their Indiana returns.
H&R Block Senior Tax Advisor Michelle Bachtel says that could be the case if you moved mid-year, as the state calculates county taxes based on where you live on Jan. 1. For instance, someone who moved from Pulaski to Starke County and changed their withholding may end up owing state taxes.
The Department of Revenue Commissioner, John Eckart, has resigned after state officials found $205 million in local option income tax money owed to counties wasn’t distributed. State Budget Director, Adam Horst, blamed the problem on a programming error.
The problem with distribution of the local income tax money comes months after the state found $320 million in corporate taxes that were collected over four years but not transferred to the state’s general fund.
Jennie Carter appeared for her initial hearing in Starke Circuit Court this morning. Charged with a felony count of theft, Carter pleaded not guilty to Judge Kim Hall. She is currently out on $5,000 cash bond.
Carter requested a court appointed lawyer, but under questioning by the judge, she said that she was gainfully employed, and paid $2,600 a month. When asked if she had anything of value that could be sold to pay a lawyer, she said she had a four-year-old television and a 2007 Ford Taurus that she was making payments on. Her on-hand cash was listed as $200.00, and she said her $5,000 bond money was borrowed.
In an effort to explain how the embezzlement of $7,140 could go undetected for almost a year, the Starke County Tourism Board issued a timeline and statement yesterday in the Jennie Carter case.
According to the timeline, Carter, Coordinator of the Drug and Tobacco Free Starke County organization, wrote a check for that amount of money on March 21st, 2011 to the Drug Free organization. She claimed it was for money owed to the Indiana Department of Revenue in taxes. Cosigning with Carter was the Tourism Board President, Rich Wieczorek, who is not suspected of wrongdoing. The check was cashed by Carter, who took possession of the money.