Both Parents Trying To Claim

[sharlan]

I have one set of parents that have been married for about 5 years, but seperated for over 4. They share a 50/50 custody, nothing is in writing, they've never gone to court.

My contract is with the father, he is the one who pays me.

I have always given him the W-10 as my contract is with him and he pays.

Mom called about 7 last night wanting my tax id. I told her that I had already provided the info to the dad and she needed to work it out with him. She kept telling me that she was claiming the child and that the dad couldn't use the daycare so she was going to. I again told her to contact the dad as I wasn't going to get in the middle, they had to work it out. I heard her tax person in the background and I "THINK" I heard him say, "Don't worry, we can just put down she wouldn't give it to you." I told her that if I got audited, I would report that she lied.

My question to Tom, can the parent who doesn't claim the child on their taxes claim childcare?

[TomCopeland]

child care tax credit

I have one set of parents that have been married for about 5 years, but seperated for over 4. They share a 50/50 custody, nothing is in writing, they've never gone to court.

My contract is with the father, he is the one who pays me.

I have always given him the W-10 as my contract is with him and he pays.

Mom called about 7 last night wanting my tax id. I told her that I had already provided the info to the dad and she needed to work it out with him. She kept telling me that she was claiming the child and that the dad couldn't use the daycare so she was going to. I again told her to contact the dad as I wasn't going to get in the middle, they had to work it out. I heard her tax person in the background and I "THINK" I heard him say, "Don't worry, we can just put down she wouldn't give it to you." I told her that if I got audited, I would report that she lied.

My question to Tom, can the parent who doesn't claim the child on their taxes claim childcare?

To claim the child care tax credit the parent must live with the child for more than half the year and pay more than half the child's living expenses. So, two parents cannot claim the same child in one year. The parent is supposed to give you a W-10 to collect your tax id #. You were correct not to give any information to this parent who didn't pay you.

If the mother tries to claim the credit she can put on her form that you refused to give her your number. However, she will have to prove that she paid for the child care. So, it's possible you could get audited as a result of both parents claiming the child. But, if that happens, it's more likely that the mother will be in trouble with the IRS, not you.

[sharlan]

Thanks, Tom.

The child doesn't live with either parent more than 50%. They share a 50/50 custody arrangement. 2 days, 2 days, 3 days.

Can the father claim the child care tax credit if he doesn't claim the child? He is the one who has made all the payments.

[TomCopeland]

child care tax credit

Thanks, Tom.

The child doesn't live with either parent more than 50%. They share a 50/50 custody arrangement. 2 days, 2 days, 3 days.

Can the father claim the child care tax credit if he doesn't claim the child? He is the one who has made all the payments.

The child must be the dependent of the parent who is trying to claim the child care tax credit. Since neither parent lives with the child more than 50% of the time, neither can claim the credit.

[SilverSabre25]

Augh I wish I'd read this before.

Oh well. It's on them.

My pair of divorced parents are in exactly this situation. and I know they just claimed things wrong (after I filed my own taxes) because dcd called for my tax info. I had a feeling it was wrong at best, sketchy at worst for both of them to be claiming it....dcd doesn't pay me, he pays mom, and 100% of the money comes from her. She's the only one I have a contract with. (although they divorced sometime mid-year...actually I don't think it was final until after the first of the year, but the custody stuff changed mid-year....it's really complicated)

I gave it to him because I wasn't sure I shouldn't....can *I* get in trouble for THEIR mistake?

[TomCopeland]

child care tax credit

Augh I wish I'd read this before.

Oh well. It's on them.

My pair of divorced parents are in exactly this situation. and I know they just claimed things wrong (after I filed my own taxes) because dcd called for my tax info. I had a feeling it was wrong at best, sketchy at worst for both of them to be claiming it....dcd doesn't pay me, he pays mom, and 100% of the money comes from her. She's the only one I have a contract with. (although they divorced sometime mid-year...actually I don't think it was final until after the first of the year, but the custody stuff changed mid-year....it's really complicated)

I gave it to him because I wasn't sure I shouldn't....can *I* get in trouble for THEIR mistake?

If both parents claim the child care tax credit, they are the ones that will be in trouble. If the IRS thinks that you got paid twice and audits you, you will have records to show you only got paid once.

[sharlan]

Thank you so much for the clarification.

As it turns out, dad did not file taxes according to his mom. I will report the income regardless of what they do.