Divorces are frequently complicated when young children are involved. In an effort to allow children to maintain stable and secure relationships with both parents, many divorced couples enter into joint custody arrangements that allow the child to spend time with each parent. During a divorce negotiation, parents frequently decide how to handle various types of expenses including clothing, food, and tuition. To afford these expenses, custodial parents frequently rely on child support. While child support carries many expenses, child support sometimes does not cover some elements like child care.
Parents frequently pay for daycare and babysitting so that the parent can work. A court might require both parents to contribute to daycare costs. Daycare and babysitting are often considered “variable expenses”, a category of expenses that include items above basic support costs associated with raising a child. Many child support orders specify how parents will pay for variable expenses. Sometimes, one parent will pay for variable expenses and then submit receipts of these costs to the other spouse for full or partial reimbursement.
Birmingham, Alabama Modifications Of Child Support Order
The specifics of the costs of daycare might be included in an initial child support order. In some situations, parents will modify child support orders if there has been a substantial change in the circumstances of one of the parents. One of the many factors that courts will analyze in this situation is the cost of daycare expenses in addition to various other factors. To be fully prepared for the costs of childcare, a parent should not anticipate that daycare costs will be included in a child support order.
Tax Advantages Of Paying For Child
A joint custody childcare plan offers paying individuals several tax advantages, which include the following:
- Dependent Deduction. The dependent deduction can only be claimed by custodial parents. If both parents agree that the non-custodial parent pays for a majority of childcare expenses, however, the non-custodial parent may claim this deduction.
- Childcare Tax Credit. Paying for childcare also offers a tax advantage in the form of a childcare tax credit, which is available for children under the age of thirteen. This credit extends to $3,000 for one child and up to $6,000 for multiple children for childcare costs that are paid so that both parents can work. Only the custodial parent can claim the childcare tax credit and there is no option to transfer such a credit to the non-custodial parent.The qualifying child must have lived with the parent for more than half of the year, which might leave some parents unable to claim the credit.
The Help Of An Birmingham Family Law Attorney