Divorced Parents

Two situations regarding children and the tax deductions and credits that go with them:

Situation 1 — Parent does not claim their minor child as a dependent but paid medical expenses on their behalf during the year.  Is that parent entitled to deduct the medical expenses?

The answer is yes.  If one parent claims the child as a dependent, both can take the deduction for medical expenses that they paid on the child’s behalf.

Situation 2 — Parent does not claim the minor child as a dependent but paid for day care.  Is the parent entitled to the Child and Dependent Care Credit?

Again, the answer is yes if that parent is the custodial parent.

Be careful.  In both situations there are other tests that must be met.  However, the takeaway here is that just because you don’t get the dependency deduction does not mean that you lose all of the tax benefits that go with it.

For more information, contact our office.

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