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Old 08-20-2016, 04:19 PM
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Rioe Rioe is offline
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Originally Posted by DGES View Post
Both live with Ex

My income: $75854

Her Income:$94720

Children Special Expense:
Child Care Expenses
Paid to Provider: (do I enter this year's estimated $10080 or last year's $10692?)
Claimed on Tax Return (Line 214 or her 2015 Tax return): $10692
Your section 7 percentages are 55% vs 45%.

So during the 2015 year, she's paid 55% of $10692 which is $5880.60 and you've paid the other $4811.40.

Now she does her taxes for 2015 and claims the full $10692 (because the children live with her). Her refund is X.

She does her taxes a pretend second time, not claiming anything in child care. Say her refund would only have been Y without it.

So claiming child care makes a difference of X-Y in taxes for her. She pays you 45% of X-Y to square things up for last year. The hard part is often getting the money from the ex.

Now you compare your line 150 incomes (probably) and calculate a new section 7 proportion for next year. And next year, you will be using the actual expenses incurred, not your estimated $10080.
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