Dependent Care pre-tax deduction max 5k or 2.5k for divorced parent?

Question

Curious, My "X" is primary custodian (big surprise in this legal system). Is my "X" able to deduct upto 5k or is it only 2.5k?

I thought married couple could do 5k, but solo parental units where 2.5k...which of course I'd do the same..and enjoy reducing my income by the 2.5k as well for our son :)

BTW. we have a good working relationship in his regards and he is the best thing ever..in my life :)

I'm just trying to maximize irs tax deductions. etc

Answer 1

You aren't going to like the answer. To verify it, read chapter 32, child and dependent care credit, in IRS Publication 17. You can download it at irs.gov

Only the custodial parent can take the child care credit. There is no splitting of the credit between the parents, and the non-custodial parent can't take the credit even if he (or she) is allowed to claim the child that year as a dependent.

But congratulations on putting the child first, and keeping up as good a relationship as possible for his sake.

Answer 2

An unmarried custodial parent can reduce his or her salary by up to $5,000 for employer provided dependent care benefits.

The noncustodial parent cannot enter into a salary reduction agreement for dependent care benefits, even if the noncustodial parent claims the dependency exemption for the child.

Source: Instructions to Form 2441 Child and Dependent Care Expenses

Answer 3

I believe that in order to qualify for the deduction, the child must be your dependent. Since the child can only be a dependent on one return (You or your spouse), the amount can only be deducted by one of you. As you are aware, even in joint custody situations, only one gets to claim the dependent on their taxes.

This is explained in the following IRS publication

http://www.irs.gov/publications/p503/ar02.html#d0e226