Legal Question in Family Law in California
If both parents have joint custody what do we do when come tax time?
Asked on 3/26/11, 10:23 am
1 Answer from Attorneys
The parent who has more physical custodial time is legally entitled to claim the child for all purposes on their taxes. That can, however, be altered by agreement if it would be financially beneficial to both. For example, if there were certain tax credits and deductions that the mother would be unable to take due to high-income phase out, and that parent has 51% custody time, that parent could let the father take the child for tax purposes, increasing the father's after tax cashflow, thereby reducing the mother's child support payment - a win-win at Uncle Sam's expense.
Answered on 3/26/11, 6:17 pm