If your ex files bankruptcy, be aware that child support and alimony debts are NOT dischargeable in bankruptcy! I learned this when my ex tried to claim they didn't have to pay the judgment after filing Chapter 7. The bankruptcy court specifically excluded the support judgment from discharge, and we were able to continue collection efforts even during the bankruptcy process. Tax-wise, this became relevant because we received a large lump sum payment after the bankruptcy that included interest, which has different tax treatment than the base support amounts.

Based on my experience with a similar situation, the interest on judgments for support payments is treated differently from the underlying support amounts for tax purposes. Interest income is generally taxable to the recipient regardless of whether the principal support amounts are taxable. So in your case, any interest that accrues on the $37,000 judgment would likely be taxable income to you, even though the child support portion ($22,000) isn't taxable and the alimony portion ($15,000) may not be taxable due to your 2019 divorce timing. The IRS treats judgment interest as investment income, not as support payments. This means you'd report it on Schedule B of your 1040 as interest income. Keep detailed records separating the principal amounts from any interest awarded, as you'll need to report them differently. Also worth noting - if your state adds interest or penalties to the judgment, those typically follow the same tax treatment as regular interest income. Your court judgment should specify how much of the total award is principal versus interest/penalties.

Has anyone applied for an ITIN more recently? I've heard the process is faster now than it was a few years ago. Planning to apply in June for my parents who'll be moving here and wondering if the 7-11 week timeline is still accurate.

I went through this exact same process for my spouse last year! A few key things that helped us: 1. **Document requirements**: Your wife's passport is perfect - it covers both identity and foreign status requirements in one document. You MUST send the original or a certified copy from the issuing agency (regular photocopies won't work). 2. **Filing together**: You submit Form W-7 WITH your tax return, not separately. The IRS processes them together. 3. **Mailing options**: If you're nervous about mailing original documents (totally understandable!), look into IRS Taxpayer Assistance Centers or Acceptance Agents in your area. They can verify documents in person so you don't have to mail originals. 4. **Timeline**: Applied in September last year and got the ITIN in about 8 weeks. During tax season it takes much longer. 5. **Form completion**: Make sure you check the right box for why you're applying - sounds like it would be "spouse of U.S. citizen/resident alien" in your case. The process seems overwhelming at first but it's actually pretty straightforward once you have the right documents. Your wife's passport should be sufficient as the supporting documentation. Good luck!

Plot twist: what if the 'wrong' account is actually a secret IRS slush fund? 🕵️‍♂️💰

Had this exact same thing happen to me a few years back. In addition to calling the IRS, I'd also recommend filing Form 8888 if you need to split your refund between multiple accounts in the future - it helps prevent these kinds of mix-ups. Also, make sure your tax preparer has professional liability insurance that covers these types of errors. Some will actually reimburse you for any fees or penalties that result from their mistakes. Document everything and don't let them brush it off as "no big deal" - this is their responsibility to fix.

I'm confused about one thing... isn't there a way for you to get the child tax credit even without income? I thought there was something called the "additional child tax credit" that was refundable even if you don't owe taxes? But maybe that only applies if you have at least some income...

Just wanted to add some practical advice from someone who went through this exact situation. Since you and your boyfriend live together and he's supporting both you and your daughter, the smartest move financially is definitely for him to claim her on his taxes. But here's something important to consider for the future - you might want to think about getting married or at least getting his name on the birth certificate. While it doesn't matter for taxes right now, it could matter for other things like medical decisions, social security benefits if something happens to him, or custody issues if you ever split up. Also, even though you can't benefit from tax credits this year, you should still keep track of any expenses related to your daughter (medical bills, childcare if you ever use it, etc.) because these records might be helpful when you do start working again. And don't forget that you can start contributing to a Roth IRA once you have earned income - even small amounts can really add up over time for your future! The birth certificate thing is easy to fix in most states even if you're not married, so that might be worth looking into for peace of mind.

Has anyone used TurboTax to file with Sweater Ventures investments? I'm wondering if it handles the forms correctly or if I should use a CPA this year since I started investing.

As someone who just went through my first year of investment taxes, I can totally understand your nervousness! Here's what I wish I had known starting out: First, don't let tax fear keep you from investing - it's really manageable once you understand the basics. Sweater Ventures should provide you with all necessary tax documents (likely K-1 forms as others mentioned) by mid-March typically. My biggest piece of advice: start a simple spreadsheet right now to track your investments. Note the date, amount invested, and any distributions received. Even though the platform will provide documents, having your own records helps you double-check everything. Also consider opening your first investments through a Roth IRA if you're eligible - the tax implications are much simpler since you've already paid taxes on the money going in, and qualified withdrawals in retirement are tax-free. Many platforms including Sweater allow IRA investments. The tax complexity really isn't as bad as it seems from the outside. Take the leap - you can always start small and learn as you go!