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  • Tax/child care questions

    Hi All,

    Hope a few of you may throw in an opinion or two on a few questions that have recently commenced entertaining my attention.

    Situation:
    I, the Husband - Separated, so far amicably, shared custody/primary residence, about to sign an agreement that I concocted, I'm the higher earner and therefore contribute child care/expenses/spousal to her.

    Her, the charming ex, lives in our house (until now rent/mortgage free as I cover all expenses), she wants to buy me out for a reduced amount (not an issue), she will be receiving a reduced child care amount based upon the fact that we're completely sharing custody (this has been in effect for 1.5 years and seems to be working out for our 3 year old son), she will also be receiving a hefty monthly spousal support payment from me.

    We're both fairly young and her career is improving more rapidly than my own. This is good.

    Anyway, before I go sign away my life, I had a tax related question:

    Currently, the sep. agreement states that I pay 60% and she pays 40% of child care and extraordinary expenses. We're happy with that amount. Problem is an article that I came across stating that you have to jump through a few hoops to have both parents claim the child care $7k tax deductable every year.

    I'd rather avoid alternating child care claims (complicated). Any advice on how this should work? (P.S. She's claiming the equivalent to spouse amount which we had initially agreed to share only to discover that despite my substantial contributions and shared custody provisions, I cannot claim this as I'm paying child support and will likely claim spousal also. Seems a little unfair but thus is life).

    Any opinions are greatly appreciated.

  • #2
    Pushing it to the top for any last second opinions before the beads of sweat settle and I sign....

    Q. Can both separated parents claim child care deductions?

    Comment

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