2015 has come to a close and employers are mailing out W-2s. Make sure you understand the tax consequences of your child custody, child support, or parenting time arrangement.
Your children may have a significant impact on your federal tax obligations. If you are a divorced or unmarried parent, strict federal rules determine whether or not you can claim various tax credits and exemptions for your children. These include the child tax credit, childcare tax credit, earned income credit, and dependency exemptions -- any of which could have great impact on your potential tax or refund.
As you are preparing this year's taxes, or working out the details of a child custody, child support or parenting time arrangement, it is wise to consult with a knowledgeable attorney or tax professional. Few parents are fully aware of the tax consequences associated with divorce and other family law matters. A conversation with your tax or family law attorney may save you a great deal of money in the long run, and avoid potential confusion or conflict with the other parent of your children.