My Husband and I pay child support and medical, dental and vision expenses for his daughter. Along with that, we pick her up and drop her off at her Mother's house every other weekend. (She lives 3 hours away, and today gas is about $4 a gallon!) We also have her for a month in the summer, when we have to provide daycare. Having a child, even part time is expensive. Are there any tax deductions or breaks that we can get, even though she is a "nonqualifying dependant"? It doesn't seem fair that her mother should get all of the breaks when we spend a lot of money to support her. It seems like the IRS thinks that just because a child doesn't live with you the majority of the year, that you don't have to feed or clothe them, or take care of them in general. :(
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Only the parent who has the child for more than half the year can take advantage of the Child Dependent Care Credit. Only one parent can take the exemption for the child. Driving a child around, clothing, food, and other child support items are never a tax deduction, even for your own dependent child. If you itemize your deductions, and have large amounts of medical expenses (more than 7.5% of your adjusted gross income), you would be able to deduct a portion of the medical expenses you pay for her. Most people don't have enough medical for this to come into play, so you probably get nothing here. http://www.irs.gov/taxtopics/tc502.html If either you or your spouse has access to a Section 125 Flex-Spending Plan at work, be sure to take advantage of it. You can pay for her medical expenses through that plan and, in effect, get a full tax deduction for them. I saved the best for last. :)
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