Child support, tax exemptions and custody

Divorced Wisconsin parents who share custody of their child cannot both claim the child as a dependent on their federal income tax returns. Often, parents work around this by including a provision in their parenting agreement to claim the child in alternating years. Child support payments are neither income for tax purposes to the recipient nor are they deductible by the payer.

Parents who pay child support are also usually not allowed to claim the child as a dependent. This is based on where the child lives rather than the amount of financial support offered, so the custodial parent usually has this right. However, if the custodial parent signs an agreement as well as IRS Form 8332, the other parent can claim the child as a dependent.

A portion of the child support that is owed each year goes unpaid. In 2013, $10.4 billion of the $32.9 billion owed was never paid.

Child custody and support can be two of the most difficult elements of divorce to work out. Both parents may struggle with having less time with their children, but in some cases, they are able to negotiate an agreement that suits them both. An attorney may be able to assist a parent with negotiation or litigation. If the case goes to court, a judge will make a decision based on the best interests of the child. While there are guidelines in place for determining child support, a court may take other factors into account such as various expenses. A parent may need to return to court to get child support modified if there is a change in financial circumstances. The court system will also assist a parent in collecting unpaid child support.