2019-01-29T07:46:57+00:00

The Tax Implication of Having Dependents

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The Tax Implication of Having Dependents

I am working on a problem with married couple, Donna and Paul Decker who file a joint tax return. The wife is the custodial parent of two children, ages, 17 and 18, that reside with the married couple during the 9 month school year and then with the father, Bob, 3 months during the summer. Bob pays child support of $150 per month per child during the 9 months that they live with the mom and her husband. Bob spends $200 per month per child during the 3 months that they reside with him. Donna and Paul can document that they provide $2000 support per child per year. The divorce decree is silent as to which parent can claim the exemption for the children.

So do they get to file the kids as dependants? Also what happens with the child support, is it just 9 x $(150x2)= $2700....the Deckers spend more...I am wondering if there is anything else I need to know about how this situation will affect the tax return and what I need to put where.

The only additional information is provided about the children is that the Deckers paid $380 for the Daughter`s medical bills and $850 for both children in doctor and hospital bills.


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