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Financial Issues This forum is for discussing any of the financial issues involved in your divorce.

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  #11 (permalink)  
Old 07-11-2017, 09:09 PM
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It doesn't matter who in her house claims them, you still pay the after tax benefits cost according to your proportionate share.
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  #12 (permalink)  
Old 07-12-2017, 12:22 AM
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Quote:
Originally Posted by almostdivorced2017 View Post
I do not understand what this "after-tax value" means. On the surface, it seems "good" because it is reducing the costs that are being assigned to me, but I would like to understand how/why it is being calculated in the first place.
Your ex should be claiming this on her taxes, because the lower income partner is supposed to make the claim. So unless her husband makes less than she does, it isn't him claiming it.

But anyways, here's what it looks like, with some made up numbers. There are caps, but since I'm making up the numbers I'm going to pretend they are under and not worry about it.

Say the daycare expenses are $2000 a year. Your ex claims that in her taxes, and it makes a difference of $300 for her refund. So the after-tax cost of daycare is only $1700. That's the part that gets shared between the parents.

Say the sports expenses are $700. Let's say that including this expense makes her refund $150 higher. So really, the sports only cost $550.

To get these numbers, people do a pretend tax return without the claims and then with them, and compare the results.

If she's not providing you with her tax returns so you can verify her claims and check the math to make sure she's done it right/honestly, then request them before reimbursing her anything. Also request copies of receipts for the expenses. Don't just blindly accept a letter that tells you it's down to 65% of the actual expense.
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Old 07-12-2017, 12:30 AM
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What if she has been dumb enough to not claim the children's sports expenses?

Then we're both out the tax credit?

And does it even matter with it being phased out now?

If she gets $10,000 in disability and claims $7000 in braces what would that look like in a tax claim? Is this why she was quick to pay the whole cost on her visa when I kept saying over and over at the orthodontist I'll pay my share directly?

She insisted and I wasn't going to sit there and argue about it and transferred her my share the very next day.
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  #14 (permalink)  
Old 07-12-2017, 08:08 AM
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You should always deduct the tax credits whether she claims them or not.
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Old 07-12-2017, 03:07 PM
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Curious... Can you include the eligible dependent tax credit into these calculations?
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  #16 (permalink)  
Old 07-12-2017, 03:59 PM
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No thats not listed anywhere as allowed. Same for the "baby bonus".
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Old 07-13-2017, 09:28 AM
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Quote:
Originally Posted by rockscan View Post
Who gets the tax benefit? Is your proportionate share 65%?
The share is 50/50 and has been applied by ex after the "after tax deduction.

one of us claims children for taxes, another one - daycare expenses.
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  #18 (permalink)  
Old 07-13-2017, 09:35 AM
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Then it was calculated right. Only one person claims the kids on their taxes in most cases (shared is different) and the person who claims them then applies the tax deduction to the costs to split.
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Old 07-13-2017, 09:37 AM
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Quote:
Originally Posted by rockscan View Post
Then it was calculated right. Only one person claims the kids on their taxes in most cases (shared is different) and the person who claims them then applies the tax deduction to the costs to split.
Thanks a lot!!!
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