I am not certain that all the facts are in this post. I assume that you currently are supposed to be getting child support through the CSE? If so, and you are supposed to be receiving the support from the state, then how does he owe $30,000 and is not been called into court?
If you have a verbal agreement for child support amount and no court order child support has ever been filed then the IRS would not hold payment of income tax. They have defined that there are exceptions to what a qualifying dependent is. It states nothing of fixing them food, getting them ready for school, or anything about daily care of the chld. If there was not a written agreement for support or court order, then there would have been no amount to be proven to the IRS that 1/2 was paid…
Here is what I found on the filing issue:
These are the instructions for filing form 1040 for 2007. If you read pages 16-17 you will see what qualifies someone as a relative/dependant.
According to the definitions and special rules, I can not tell you for certain that anything was done wrong. If I am reading this correctly the child can be claimed if; parents are divorce/separated/or lived apart during last 6 months of 2007, the child recieved over 1/2 of the child support for 2007 from the parents(support of a child received from a parent’s spouse is treated as provided by the parent), child is in the custody of one or both parents more than 1/2 of 2007, And: the custodial parent signs a form 8332 that she/he will not claim the child, or this is specified in a pre-1985 agreement and at least $600 is provided as support.
If there is no agreement, you do not file taxes and neither does the father, then the stepmother may have been within the law to file the child. It does not say that all of the support must be paid only over 1/2. A stepchild for which over half the support was paid by a stepparent, where there is no agreement and neither parent files taxes, can file that child on their tax returns. Yes, it would be the apparent “right” thing to do to give the child the money but it is not illegal.