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134 votes
Accepted

I have sole custody of my child but the child's father's brother claimed him as a tax deduction

Your E-file return will be rejected if you are the second person to file, so you should file a paper return claiming your child, and you'll get your refund as you filed it. You and the other party ...
NL - Apologize to Monica's user avatar
125 votes
Accepted

How to share income after marriage and kids?

My suggestion would be that you're looking at this the wrong way, though for good reasons. Once you are a family, you should - and, in most cases I've seen, will - think of things differently than ...
Joe's user avatar
  • 35.8k
80 votes

How to share income after marriage and kids?

You remind me a lot of myself as I was thinking about marriage. Luckily for me, my wife was much smarter about all this than I was. Hopefully, I can pass along some of her wisdom. Both of us feel ...
mikeazo's user avatar
  • 1,669
77 votes

I have sole custody of my child but the child's father's brother claimed him as a tax deduction

You need to call the IRS at 1-800-829-1040 and explain that you are the custodial parent. The IRS service representative will tell you what to do. Generally what will happen is that you will re-...
Five Bagger's user avatar
  • 9,785
72 votes

How to share income after marriage and kids?

I started out thinking like you but I quickly realised this was a bad approach. You are a team, aren't you? Are you equals or is one of you an inferior of lower value? I think you'll generate more ...
RedGrittyBrick's user avatar
67 votes
Accepted

If a kid makes money, do the parents take on the tax liability?

Operating a lemonade stand would count as self-employment, and if they earned more than $400 they would be required to file a tax return. In this case, the income is too low for there to be any income ...
Hart CO's user avatar
  • 70.5k
57 votes

Can I hire my kid and start a Roth IRA for him?

Forget the Roth for one moment. Having a $5500 deduction for your LLC would be great. Parents hire their kids all the time. To do real work at a reasonable wage. Do you have work that's appropriate ...
JTP - Apologise to Monica's user avatar
55 votes
Accepted

Best way to make sure my son has an income after I have died

Typically a trust is the solution to this. You set up a trust fund, and either fund it with money now, or (more likely, in your situation given your income) make it the beneficiary of a life ...
Joe's user avatar
  • 35.8k
42 votes

How to teach personal accounting to an 8-year-old

If I were you I would simply use a check register, cash, and jars. Check register sheets can be printed online and increased to an appropriate size. I really like Dave Ramsey's teaching on this. ...
Pete B.'s user avatar
  • 76.7k
33 votes

If a kid makes money, do the parents take on the tax liability?

This actually happened to my brother. Started a Minecraft server at the age of 14 which became massive and netted him about 100k through donations in a year. He had to file it as personal income (my ...
TheSaint321's user avatar
27 votes

How to teach personal accounting to an 8-year-old

I've recently switched over to an allowance system that is attempting to teach my son the value of money, and more specifically, saving money to earn more money. It's a very exaggerated interest-based ...
Dan's user avatar
  • 279
25 votes

Can a 15 year old finance something?

(This is not an answer to your question, but needs to be said anyway.) it would be much easier to finance the laptop instead, since (mumbled excuse). Even if it's legal, (and I completely ...
RonJohn's user avatar
  • 50.7k
25 votes

How to teach personal accounting to an 8-year-old

Since she essentially only has a cash register, a simple cash journal should do the job. Have her do weekly sums and compare with the contents of the piggy-bank. If she forget to record some ...
Daniel's user avatar
  • 5,316
21 votes
Accepted

Does having several kids really mean I don't pay any federal taxes?

You pay $3k in taxes now and are adding $6k in credits, so it makes sense that you'd pay no taxes. In fact, the CTC is refundable up to $1,400, so you'll probably get a significant refund instead. ...
D Stanley's user avatar
  • 137k
20 votes

529 (college saving) account for multiple kids

With that close an age gap it would probably make sense to use separate 529s. Technically you can transfer funds and even change the beneficiary from one sibling to another, but if both are in college ...
D Stanley's user avatar
  • 137k
20 votes
Accepted

How to set up passive income from investments for children?

This is done with a legal entity called a trust. A trust is where a person (trustor) arranges to give assets to another person (trustee) for them to hold and manage for the benefit of a third person (...
Ben Miller's user avatar
  • 116k
17 votes

I have sole custody of my child but the child's father's brother claimed him as a tax deduction

I would highly advise you to speak to a lawyer. Given that the court gave you full custody of your child, then you are the one to claim him as a dependent. The IRS doesn't know the outcome of your ...
Michael's user avatar
  • 10.2k
16 votes

I have sole custody of my child but the child's father's brother claimed him as a tax deduction

A not dissimilar thing had happened to me. Nathan's answer is correct from a technical point of view, but you should also provide a letter to the IRS and selected highlighted pages from the court ...
Pete B.'s user avatar
  • 76.7k
15 votes

Best way to make sure my son has an income after I have died

A bit more detail to complement the advice already given. You need around £800k - £1M to comfortably allow for an ongoing income of £20k per annum. I would get some advice from a qualified IFA ...
davidjwest's user avatar
  • 1,492
14 votes

How to share income after marriage and kids?

Now I have been trying to figure out how to split the money that we both earn. From what I can see there are several concepts but none of them really seems ideal to me. There is nothing fair or ...
Dheer's user avatar
  • 57.1k
13 votes

How to share income after marriage and kids?

I started this off as a comment to Joe's answer, but it got rather messy in that form so I'll just post it as a separate answer instead. I suggest that you read Joe's answer first. I believe you are ...
user's user avatar
  • 4,609
13 votes

Does having several kids really mean I don't pay any federal taxes?

If this is the case, and you have any pre-tax retirement money, now is the time to consider Roth conversions. Not all at once, of course, but just enough so you would pay perhaps 10% on some of the ...
JTP - Apologise to Monica's user avatar
12 votes

Savings Accounts for Future Child Expenses

If you have the option of a high deductible health plan you might consider using a High deductible plan with a Health Savings Account (HSA) in the years before the first child is born. You can ...
mhoran_psprep's user avatar
11 votes
Accepted

Savings Accounts for Future Child Expenses

There aren't any. Of these significant, relatively predictable expenses I would not necessarily classify child birth cost as either significant or predictable. Depending on your health ...
Pete B.'s user avatar
  • 76.7k
11 votes

How can I help a 17 year old track and pay me back a personal loan?

Criteria would be the ability for him to ... see the remaining balance. For just the two of you, a shared Google spreadsheet is far and away the simplest path to satisfying this criterion, while ...
RonJohn's user avatar
  • 50.7k
11 votes

529 vs IRA for kids education and future scholarship

First off, we should clarify what you mean by "529 - money in the kid's name". Usually, this means that the parent sets up a 529 account in their name, but puts down their kid as the beneficiary. ...
Nosjack's user avatar
  • 8,787
10 votes

How to share income after marriage and kids?

I won't answer in a detailed manner because most people at this site like answers with certain bias' on these questions, like pool resources always relative to which partner is asking. If you follow ...
GuestFinance's user avatar
9 votes
Accepted

529 (college saving) account for multiple kids

In my opinion, this is probably a personal choice. With no extra paperwork, you and your spouse can each gift $15000 per child. Unless you are planning to gift more than $30K combined, one acct, to ...
JTP - Apologise to Monica's user avatar
9 votes
Accepted

Is it possible to add a child to a UK credit card?

No. The minimum age at which a person can have a credit card in the UK is 18. Any attempt to search for the minimum age for credit cards in the UK confirms this (e.g. Money Supermarket). However, ...
Steve Melnikoff's user avatar

Only top scored, non community-wiki answers of a minimum length are eligible