Tis the Season … For Taxes

Parents are allowed various tax breaks under the Internal Revenue Code.

Some of them deserve highlighting when parents are divorced or unmarried.

  1. Child Dependency Deduction. The early bird gets the worm. The first parent to file snares the deduction. If they were not entitled to it, the other parent will have to prove that to the IRS. Part of the proof will be documentation showing that the parent seeking the deduction provided more than fifty percent of the child’s support

  2. Child Care Tax Credit. The cap on this has increased. Obtain a statement of the amount paid from the provider

  3. Alimony or Spousal Support. The recipent must remember to include alimony in their reported income. The paying parent may deduct it. This is the default tax treatment. The spouses may agree differently.

  4. Adoption Credit. The cap on the credit has been increased.

Read more in this Fox Business News article: Tax Breaks Every Parent Should Know.