Child Custody Agreement and Taxes
A youngster custody agreement can have severe implications on your tax filing and your taxes overall. This problem must be addressed with your attorney or with your accountant whilst you are going through the method of negotiating or litigating youngster custody or a divorce agreement. Waiting until after you have finalized a child custody agreement to investigate the tax impact is not adviseable.
State law on child custody does not dictate who gets the tax deductions. If your youngster custody agreement is entirely silent on this issue, the parent with main residential or sole custody will have all of the tax positive aspects obtainable by way of the youngsters. That party will be able to claim the kids as deductions, and so forth. dallas family law attorney, This can be a substantial concern. There are parents who just assume that if they are paying thousands of dollars per year in help, they will be in a position to take the young children as deductions. Not so. This is incredibly essential when you contemplate that all youngster help payments are not tax deductible to the payor and they are not taxable to the recipient parent.
Therefore, when negotiating your kid cusody agreement, you should address the issue of how custody will be structured and who will recieve the tax rewards. This negotiation must be a component of an overall monetary scheme that encompasses a consideration of all issues, such as kid custody, youngster assistance, property, alimony, and tax impact.
The ability to claim head of household instead of married filing separate or even filing single can be extremely important to your overall tax scheme. You can claim head of household if you have your kids for far more than 50% of the time. Thus, a head of household tax filing should be a component of the general negiating outline in a divorce or separation scenario. A youngster custody agreement that is silent on this problem is actually not a well negotiated or written agreement.
Your kid custody agreement can address this problem in a quantity of methods. If your youngster custody agreement provides for joint shared custody, it need to state who has the kids for 50% of the time. dallas family law attorney ,If you have two children, you can divide that up so that every single parent has the possibility of fiing for head of household. If you simply have joint custody and 1 parent has residential custody, you can nevertheless provide a head of household deduction to the other parent by wording the agreement in a way that enables for that filing.
There are other tax benefits available to parents that have to be regarded as when negotiating a youngster custody agreement. A lot of or most of those tax advantages are variable depending upon your revenue level ad no matter whether or not you can claim the child or young children as deductions. If you are genuinely thinking through your child custody agreement, you will negotiate all of these benefits. The objective should be to maximize all readily available rewards for both parties, thereby offering an overall very advantageous tax impact for your
dallas family law attorney custody agreement.