Another Tax Question

[~aquafina~]

When is it OK to take turns claiming children as dependents?

I was under the impression that the parent who has Primary Custody claims every year.

but, is there a custody percentage split that warrants taking turns?

[Wolfy]

We have 60/40 but in the divorce papers it states that we will alternate taking each child as a dependent.

[~aquafina~]

That's what I mean...

Like, when the split is much less equal...like one parent having kids every other weekend or something...there shouldn't be any question that the Primary Custodian claim the kids EVERY YEAR...

right?

[Wolfy]

Can't answer that because we have joint legal and physical custody, and its spelled out in the papers.

[Jade]

When is it OK to take turns claiming children as dependents?

I was under the impression that the parent who has Primary Custody claims every year.

but, is there a custody percentage split that warrants taking turns?

The IRS gives the custodial parent (the one with the child(ren) more than 50% of the time) the exemptions IF there is no court order that states otherwise. 

This won't stop th other parent from claiming the exemptions.  And if they file first, it would be your return that is held up (unless they haven't already sent out any refund, then it would be both) while they investigate this.

It really is better to address the exemptions during the settlement phase of divorce.

[Molly]

The NCP should get the deduction every year when they pay child support every month.

[Jade]

The NCP should get the deduction every year when they pay child support every month.

No, they should not.  Why?  Because the child support is only a portion of what it costs to raise a child.  Fortunately, the IRS recognizes that. 

In my case, I get both exemptions each year until emancipation.  And that is in the court order.

[~aquafina~]

The NCP should get the deduction every year when they pay child support every month.

That is positively ridiculous.

And like Jade said...it is VERY fortunate the IRS thinks so too.

[Molly]

When you pay taxes on that money and give it to support your children, why shouldn't you get the deduction?

[Jade]

When you pay taxes on that money and give it to support your children, why shouldn't you get the deduction?

The custodial parent pays taxes on the income that s/he  brings in to pay the bills, including the expenses for the children (and the child support that is paid doesn't even cover half of the expenses involved in raising children).  Why shouldn't s/he get the deductions? 

[Molly]

When you are paying over $12,000 a year you should get the deduction.

Why is the figure monthly for raising a child?

[Jade]

When you are paying over $12,000 a year you should get the deduction.

Why is the figure monthly for raising a child?

Well, if the ncp is paying over $12,000 a year, the cp is paying more.  Therefore, the CP gets the deduction.

Child support, as determined by the courts, is based on what they ASSUME it costs to raise a child.  The courts come up with an estimate (note that estimate does not equal actual) per year and break it out monthly. 

Sorry, but the CP is the one who is actually paying more.  Therefore, in the abscence of a court order, the CP gets the exemptions. 

[Molly]

When you are paying over $12,000 a year you should get the deduction.

Why is the figure monthly for raising a child?

Well, if the ncp is paying over $12,000 a year, the cp is paying more.  Therefore, the CP gets the deduction.

Child support, as determined by the courts, is based on what they ASSUME it costs to raise a child.  The courts come up with an estimate (note that estimate does not equal actual) per year and break it out monthly. 

Sorry, but the CP is the one who is actually paying more.  Therefore, in the abscence of a court order, the CP gets the exemptions. 

"Well, if the ncp is paying over $12,000 a year, the cp is paying more.  Therefore, the CP gets the deduction. "

How do you figure that?

Actually though no, the NCP gets the deduction every year!

Hooray for the Court System!

[Jade]

When you are paying over $12,000 a year you should get the deduction.

Why is the figure monthly for raising a child?

Well, if the ncp is paying over $12,000 a year, the cp is paying more.  Therefore, the CP gets the deduction.

Child support, as determined by the courts, is based on what they ASSUME it costs to raise a child.  The courts come up with an estimate (note that estimate does not equal actual) per year and break it out monthly. 

Sorry, but the CP is the one who is actually paying more.  Therefore, in the abscence of a court order, the CP gets the exemptions. 

"Well, if the ncp is paying over $12,000 a year, the cp is paying more.  Therefore, the CP gets the deduction. "

How do you figure that?

Actually though no, the NCP gets the deduction every year!

Hooray for the Court System!

How do you figure the CP isn't paying more? 

BTW, you are dead wrong on the ncp getting the deduction every year (unless it is agreed to by the cp, that is). 

The courts, at least in my state (according to my attorney who has been practicing family law for 20 years), split the deduction if there are 2 or more children.  If there is only one child, then they alternate the deduction.  Which means that the ncp DOESN'T get the deduction each year.  Hooray for the court system in recognizing that the number they came up with is just an estimate and the CP shouldn't be penalized for their estimate.

And if it isn't addressed in the court order, then according to the IRS, the custodial parent gets the deduction each year. 

[Molly]

In this case the Judge did order the NCP to get the deduction every year.

This is the way it should be, it needs to be put into law.

A $1000 per month child support is outrageous. A child does not need $2000 per month! 

CP's need to be held accountable and account for the child's needs. I do hope that turns into be a law as well.