How To Share the Child Tax Credit After a Divorce
The divorce process is a complicated experience that many people don’t want to experience. Besides the usual emotional challenges that both parties and the kids face, other complex issues arise, such as child-related tax issues. This means you have to consider tax considerations if you’re involved in a divorce process.
What is Divorce Child-Related Tax?
A child-related tax during a divorce process is described as the tax that parents have to pay after an agreement has been reached on shared custody and child support. This may cause one parent to pay less money in taxes, but it can also increase the taxes owed by another parent. If you’re dealing with this situation, you need to know your options. Read on to learn more about how to share the child tax credit after a divorce:
- Understand the Basics of Child Tax Credit
The first and crucial thing you need to do is understand the basics of the child tax credit. This tax is a non-refundable tax credit that can be claimed by parents or guardians who have dependent young kids under the age of 18. To be eligible for this credit, the child must a citizen or resident of the United States, related to the claimant by blood or adoption.
- Understand How to Go about It
The next step is to know how to share the child tax credit after a divorce. The initial undertaking you need to do is reach an agreement with your ex-spouse on who will claim the child tax credit. Once you have signed an agreement, you need to file a notice of motion with the court.
In the notice of motion, you need to provide the court with your contact information and the contact information of your ex-spouse. You also need to provide the court with a proposed order for the sharing of the child tax credit.
The court will then review your notice of motion and decide whether to grant your request. If the court judge grants your request, you will be required to sign a consent order. The consent order will outline the agreed terms between you and your ex-spouse.
- File Your Taxes and Pay Your Taxes
Once you have agreed with your ex-spouse on how to share the child tax credit, you need to file your taxes. When filing your taxes, you need to include the child tax credit on your tax return. You also need to include the consent order issued by the court. The consent order will outline the agreed terms between you and your ex-spouse. Once you have filed your taxes, you need to pay such taxes. You can pay your taxes by check, money order, or credit card.
Conclusion
Tax issues always tend to get out of control in divorce cases. It is, therefore, vital that you understand how to go about sharing the child tax credit after a divorce. Law Offices of Granoff & Kessler can help you navigate through the divorce process and can help address any child-related tax concerns that may arise during this time. Contact their office today located in Miami, FL, for more information.
Categorized in: Child Support