Tax Breaks for Noncustodial Fathers
A noncustodial father is considered a parent who has fewer overnights than the custodial parent. The noncustodial father may still have the child part of the time and share custody duties with the mother. For tax purposes, the custodial parent typically claims the child as her dependent. However, a noncustodial parent may have the ability to access tax credits depending on his situation.
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Background
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If the noncustodial parent provides more than half of the child’s support, he may be able to claim the child on his taxes. However, the custodial parent must sign an agreement waiving her right to claim the child as a dependent on her tax return. The required document is Form 8332, and the declaration must be attached to the father’s tax return when he files his tax return. Keep in mind that any child support you pay cannot be used for a tax deduction.
Features
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The child care tax credit can be claimed by a noncustodial father if he is claiming the child as a dependent. Child care must not be provided by the mother of the child or other dependents, and the child must be under the age of 12. As of 2010, the maximum amount you can claim for child care for one child is $3,000. You can claim up to $6,000 in child care expenses for two or more children.
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Considerations
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In the divorce decree or child custody agreement, you may be given the right to claim your child and receive the tax deductions available. The mother of the child who is named the custodial parent must waive the right to claim him as a dependent. Alternately, the court may decide to have you alternate tax years for claiming the child. Even if you have a court document that stipulates the splitting of the tax deductions, you still must attach Form 8332 to your tax return. On the form, the custodial parent can relinquish the deduction for a single tax year or multiple tax years depending on your court agreement. Another requirement for the exemption is that you paid a minimum of $600 in child support for the tax year, according to the Nolo website.
Warning
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When you are the noncustodial parent, you are not permitted to make certain deductions even if you are allowed to claim the child as a dependent. For instance, only the custodial parent is permitted to claim head of household status and earned income credit. The Earned income tax credit is for custodial parents who make low to moderate wages. The amount received as a refund on the tax return depends on the income level of the filer. Head of household status gives you a standard deduction on your taxes. This deduction applies to unmarried individuals who pay at least 50 percent of the cost of upkeep of their homes. Also, if you owe child support, any tax refunds or credits received likely will be garnished to meet your obligation.
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References
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