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Child Custody Agreement and Taxes

A kid custody agreement can have critical implications on your tax filing and your taxes general. This problem need to be addressed with your lawyer or with your accountant although you are going via the process of negotiating or litigating child 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 kid custody agreement is completely silent on this problem, the parent with main residential or sole custody will have all of the tax benefits available via the young children. That party will be able to claim the kids as deductions, and so forth. dallas family law attorney, This can be a significant concern. There are parents who basically 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 extremely essential when you consider that all kid support payments are not tax deductible to the payor and they are not taxable to the recipient parent.

Therefore, when negotiating your child cusody agreement, you must address the problem of how custody will be structured and who will recieve the tax positive aspects. This negotiation ought to be a component of an overall financial scheme that encompasses a consideration of all troubles, which includes kid custody, youngster help, property, alimony, and tax impact.

The potential to claim head of household instead of married filing separate or even filing single can be incredibly crucial to your overall tax scheme. You can claim head of household if you have your young children for far more than 50% of the time. Thus, a head of household tax filing ought to be a component of the general negiating outline in a divorce or separation circumstance. A kid custody agreement that is silent on this issue is truly not a well negotiated or written agreement.

Your kid custody agreement can address this concern in a number of approaches. If your kid custody agreement gives for joint shared custody, it should state who has the children for 50% of the time. dallas family law attorney ,If you have two kids, you can divide that up so that every single parent has the possibility of fiing for head of household. If you basically have joint custody and 1 parent has residential custody, you can still offer 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 accessible to parents that have to be regarded when negotiating a child custody agreement. Numerous or most of those tax rewards are variable based upon your earnings level ad no matter whether or not you can claim the child or youngsters as deductions. If you are genuinely thinking by way of your youngster custody agreement, you will negotiate all of these benefits. The objective ought to be to maximize all available benefits for each parties, thereby providing an general extremely advantageous tax impact for your

dallas family law attorney custody agreement.