why does the parent with custody get tax deductions while the parent paying support gets none?
if parent A has custody, but parent B pays child support, which in theory, should cover most of the expenses involved in raising a child, then why does parent A get to claim the child as a dependent, when the child is obviously dependent on income from parent B?
dependant means an Australian resident you maintained who was:
your spouse
your child aged less than 21 years, or
your child aged 21 years or over but less than 25 years who was receiving full-time education at a school, college or university and whose separate net income was less than $1,786.
If the parents of a child lived separately or apart for all or part of the income year and the child was a dependant of each of them, the child is treated as a dependant of each parent.Therefore a child can be claimed as a dependant of both birth parents for the purpose of tax
Hope that helps
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May 29th, 2009 at 12:27 pm
Because that theory is wrong. Child support payments are usually a small fraction of what it costs to raise a child.
References :
raised stepson with "support" from his mother.
May 29th, 2009 at 12:39 pm
Child support money is not most of the money required to support the child, it's a small portion towards it. Anyway I think if you pay the right support you are supporting them and can claim them as dependent.
Harriet
References :
May 29th, 2009 at 12:53 pm
dependant means an Australian resident you maintained who was:
your spouse
your child aged less than 21 years, or
your child aged 21 years or over but less than 25 years who was receiving full-time education at a school, college or university and whose separate net income was less than $1,786.
If the parents of a child lived separately or apart for all or part of the income year and the child was a dependant of each of them, the child is treated as a dependant of each parent.Therefore a child can be claimed as a dependant of both birth parents for the purpose of tax
Hope that helps
References :
http://www.ato.gov.au