Current Year’s Child Support Must be Paid in Full by December, 31st

Happy Holidays! This is an exciting time of year with many holidays, celebrations, and tidings of joy and goodwill. And if child support obligations are not paid in full by December 31, then a child likely cannot be claimed for the tax dependency exemption come April 15. While this may Vascular Surgeon, not fit into the spirit of the season, it remains a vitally important part of your annual tax planning.

Division of Child Tax Dependency Exemption

If there is an order for child support, issued by an Arizona court, then there is also an order regarding division of the child tax dependency exemption. There is also an order relating to how the parents are to share in non-covered medical, dental, vision and sometimes orthodontia expenses.

Although most family law attorneys (myself included) do not give tax advice, we do have to discuss some tax issues. The child tax dependency exemption is a big one. As you may know, there is an exemption that may benefit a tax payor upon filing. Typically, the dependency exemptions are divided in one of two ways: (1) equally or (2) following the child support percentages of income. Any tax questions on what this means or how this could affect you should be directed to a certified public accountant.

Child Support Arrearages

In order for a parent to be able to claim a child for the tax dependency exemption and receive this benefit, usually that parent must be current on child support for that tax year. That doesn’t mean if there are child support arrearages owed then all of the arrears must be paid in full as well. However, if there is an order for payment of arrearages, then the arrearages must be paid per the order for that tax year. Meaning, if someone is to pay $50.00 a month toward arrearages, then if $600 was paid toward arrearages by December 31, the arrearage is paid per the order for that tax year.

For a child support order that does not include arrearages, as long as the parent who is ordered to pay child support has paid the full amount owed for that year by December 31, then the payor parent is able to claim the child when taxes are filed.

A Wrongful Claim of the Child Tax Dependency Exemption

What happens if a parent wrongfully claims a child for tax dependency purposes – either because it is not their year to claim or because they are not current on child support or courtordered arrearages for that year? In that case, it is extremely important to consult with a certified public accountant to discuss what rights or obligations may exist. The family court may also step in to order a parent to reimburse the other parent for the loss of the value of the tax dependency exemption or modify the child support order regarding how the tax dependency exemption will be shared. In other words, it could mean money to the one who lost out or having to pay money to the one who wrongfully took the exemption.

Consult with an Experienced Family Law Attorney and CPA

The child tax dependency exemption has value. If you have questions about the tax exemption, please consult with an experienced family law attorney and also a certified public accountant. Duenas Eden Law, PLC listens to your needs to resolve your case. We are trusted attorneys in Divorce, Child Custody Cases, Child Support, Spousal Support, Same-Sex Legal Issues and other Family Law matters. Serving the Phoenix metro area including Ahawatukee, Laveen, Tempe, Chandler, Mesa and Gilbert. Trust the Family Law Attorneys of Duenas Eden Law, PLC. Call today: (480) 285-1735.

By Dorian L. Eden
Originally published in the December 2013 edition of Ocotillo Living