hidden income

[NoLongerLost]

Well, the court date is Thursday. My husband's attorney is optimistic that something willl go his way based on our paperwork, receipts, etc. Interesting thing, though, ex finally was forced to produce documents, and even with 5 months missing of bank statements, we have discovered almost $7000 in cash deposits that are not substantiated on her tax return.

We went back and researched bank statements from 2-3 years ago (we didn't get in time for court last time) and she was getting this money then, too. No way, no how that someone is loaning her $200-$400 a month. She states in her affidavit that she has not taken out any loans or borrowed money, and if it is gifts from church or family it counts as income, right? We have the deposit tickets, etc.

What are the odds the judge counts this as income? This has been a pattern for over 3 years now. About $7000 has been found so far. Any input??

[TC]

First question...what percentage of her total listed income is the $7k? 

Is it possible she is getting Child Support for another child?  Just curious.

As to how it will be viewed....hard to say.  Will really depend on her explanation.  If it is a gift, I'm not sure this will be viewed as income...CD or MT would be better to advise on that.

TC

[livealittle]

http://www.irs.gov/newsroom/article/0,,id=179077,00.html

the link is a quick list of what the IRS considers income.

here is a couple of phrases from Publication 525 about what is considered income

You can receive income in the form of money, property, or services....Generally, an amount included in your income is taxable unless it is specifically exempted by law...

[InDenial]

I don't know whether gifts count as income for child support purposes, but as far as the IRS is concerned, one party can give another party up to $13,000 per year tax free.

The limit applies to the giver, not the reciever. Thus she could get $13,000 per year from her mother, another 13K per year from her father, a further 13K per year from her grandmother, etc.  You get the picture. Repeat each year if desired. None of it would be taxable to her.