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A child custody agreement can have severe implications on your tax filing and your taxes general. This problem ought to be addressed with your attorney or with your accountant while you are going by way of the procedure of negotiating or litigating youngster custody or a divorce agreement. Waiting until right after you have finalized a kid custody agreement to investigate the tax impact is not adviseable.

State law on youngster custody does not dictate who gets the tax deductions. If your kid custody agreement is entirely silent on this problem, the parent with primary residential or sole custody will have all of the tax benefits obtainable by way of the kids. That party will be in a position to claim the kids as deductions, and so forth. This can be a important problem. There are parents who merely assume that if they are paying thousands of dollars per year in help, they will be in a position to take the children as deductions. Not so. This is incredibly essential when you think about that all youngster support payments are not tax deductible to the payor and they are not taxable to the recipient parent.

Thus, when negotiating your child cusody agreement, you ought to address the issue of how custody will be structured and who will recieve the tax benefits. This negotiation must be a component of an overall financial scheme that encompasses a consideration of all issues, such as kid custody, kid assistance, property, alimony, and tax impact.

The ability to claim head of household rather of married filing separate or even filing single can be incredibly crucial to your general tax scheme. You can claim head of household if you have your young children for far more than 50% of the time. Therefore, a head of household tax filing really should be a portion of the general negiating outline in a divorce or separation circumstance. A child custody agreement that is silent on this concern is really not a well negotiated or written agreement.

Your youngster custody agreement can address this issue in a quantity of techniques. If your kid custody agreement provides for joint shared custody, it need to state who has the children for 50% of the time. If you have two young 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 one 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 allows for that filing.

There are other tax positive aspects available to parents that have to be deemed when negotiating a kid custody agreement. Several or most of those tax advantages are variable based upon your earnings level ad no matter whether or not you can claim the child or children as deductions. If you are actually thinking via your kid custody agreement, you will negotiate all of these benefits. The objective really should be to maximize all obtainable positive aspects for each parties, thereby supplying an general highly advantageous tax impact for your

youngster custody agreement.