Taxes and Divorce, Any CPA Mama's??

I'm a CPA here in Plano.

In response to your specific questions. 1) Your status at the end of the year determines your status for the entire year. So if you're divorced by 12/31/2012 you will file as either single or head of household (if the kids are in your custody). 2) Childcare credits can only be taken by the parent who has custody AND pays the expenses.

That said I would encourage you to hire a professional tax preparer at least the first year and if possible even consult with one regarding the specifics of you custody arrangement before it is finalized. Tax effects of a divorce can be fairly complicated and it can be more costly to do it wrong and pay penalties to the IRS or miss tax benefits you are eligible for.

A. R. I., CPA
http://www.mamapedia.com/business/6575665303433379841

Ask a professional... it is not worth putting yourself at risk with the IRS. They will not buy the "I didn't know", "I couldn't afford help" excuses if you do something wrong and end up with fines.

You need facts. www.irs.gov may be able to help you as well.

Your filing status is determined by your status on December 31st so if your divorce is final you file single or head of household depending on who has dependents.

Who claims the dependents should be spelled out in your decree. You cannot claim anything related to the child unless they are your dependent.

You are single the year you become single. The person paying the child care always claims the child care, the other person did not pay the bill.

If you have it set up for both of you to share that expense you may want to go back and re-do that.

If he forgets or just doesn't pay you will be required to pay it for your child to continue. When I owned my child care center I was in the Directors group. We would occasionally have special speakers come to our monthly meeting. The yearly accountant was one of the good ones.

It does not matter who is "ordered" to pay. If the payment does not come the child will not be allowed to attend until the bill is paid. So if he just doesn't do it you will have to come up with the money, you will have to go back to court each and every time he doesn't do it too. Garnishing his wages for child support is one way but I have heard they won't do it for child care or any other bill regarding the child's support.

So when you ask who counts the child care expense that makes me wonder what is written in the papers. Don't do the shared expense for child care unless you can afford to pay outright for the child care yourself if he does not pay. There is no way they will "make" him without court and possible arrest for contempt. It is soooo not worth it.

I would say that if you are divorced before the end of 2012, you would file single unless for some reason (for some benefit I am not aware of) that you plan to file joint. If you claim your child, you should also be able to file Head of Household. I also believe that the childcare tax credit if for costs associated with a dependent...if you aren't claiming the child as a dependent, I doubt if you can claim the credit. You can contact the IRS to clarify.