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emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 2927
Experience:  IRS licensed Enrolled Agent and tax instructor
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I am wondering if we have 50/50 custody and pay half of all

Customer Question

I am wondering if we have 50/50 custody and pay half of all expenses can we both claim half of my child's daycare expenses? and the tax credit how does that work?
Submitted: 1 year ago.
Category: Tax
Expert:  emc011075 replied 1 year ago.

Hi. My name is ***** ***** I will be happy to help you.

You both will be use amount you spend on daycare to calculate credit for child and dependent care. The credit is percentage of expenses based on your income. Which means if one of you makes more than other, your credit amount will be different, even thought you both paid the same amount.

Regarding the child tax credit, the person who will claim the child as dependent will claim the entire credit.

Let me know if you have any questions.

Expert:  emc011075 replied 1 year ago.

I see you read my respond. I think I didn't make it very clear here regarding the dependent care credit. You can both use the expenses you paid to figure out your credit but only the custodial parent will be able to claim the credit. You don't have to claim the child as your dependent as long as you are the custodial parent you will be able to claim the credit.

Expert:  emc011075 replied 1 year ago.

You said you had "50/50" custody. Unfortunately for IRS and tax purposes, there's no 50/50 custody. One parent is always the custodial parent and one is non custodial parent. IRS uses tie-braker rule to help to determine who is the custodial parent:

http://www.eitc.irs.gov/EITC-Central/abouteitc/basic-qualifications/tiebreaker