<p>The thing that is causing all of the concern now is that the OP is being sued. The reason for the suit appears to be that the ex, the father, feels he should be getting something like the child deduction on his taxes, the college credit, a reduction fo child support or reimbursement for money he paid towards college. The OP did not get involved at all during the first child’s years at college or for the time the second child was in college, about who was paying what and filing forms until now, by her own admission. What’s caught her attention now is that she is being sued for remimbursement or payment of money that seems to be college related. </p>
<p>I don’t know enough tax law to make an definitive statements and any such issues need to be addressed by an expert anyways, but it seems to me that there is some quarrel about who claims the child as a dependent on the tax return and who gets to claim the college deduction/credit. The divorce decree should stipulate who gets to declare a child as a dependent. THough there are rules that the IRS also has, there is a failsafe clause that allows the parents to make that determination regardless of who is actuallly has the primary custody. This is often done to get the maximum benefit of the exemptions and deduction and the money saved is split in some way–why hand it over to Uncle Sam? That’s what most parents do when the divorce occurs. WIth two kids, each usually takes one kid as a deduction.</p>
<p>My guess is that this was the arrangement at hand and all was well until the time came that the oldest child can no longer be declared as a dependent. There is now one child and so only one parent can claim her. The one who claims her also gets the college deduction. If the ex in this case is paying the college costs and has been taking the deduction for the older daughter, and finds that he no longer can, because the OP is taking this deduction, that is reason for a dispute. If both parents are paying some college costs, who should be allowed to take the deduction? IF the OP is NOT paying, and the ex is, he certainly may have a valid reason to be steamed that he can’t get the credit on his taxes for what he is paying. That he filled out the FAFSA, is what he thinks gives him the deduction/credit. To get the deduction/credit, the student has to be included as a dependent on the return. WHen OP says, nope, the DD is HER dependent, that is where a dispute can start. </p>
<p>If this is the case, I don’t know how this should be resolved. If the OP is not paying for the college and cannot, and her ex is paying, and the situation is not addressed at all, some discussion is probably in order about alllowing him the deduction as long as he is paying the costs. It is only fair that the one who is paying gets the deduction. Perhaps some splitting of the savings from net amounts can be negotiated. In a civil situation, that is certainly what I would do. Dad is paying for college and wants the college deduction/credit and needs the kid as dependent to get it, but it means more taxes for me to pay to lose that depnendent… well, you do the numbers and do the taxes the way where both parties combined get the most and you split it. Why give the money to the government when cooperation means more overall that can be split.</p>