Financial Advice On Divorce: Are Babysitter Fees Tax Deductible?

oklahoma city divorce lawyerQuestion:

My financial advice on divorce question deals with babysitter fees and tax consequences.

Per our child custody agreements, I am responsible for paying 55% of all babysitting fees my ex-wife incurs while she is at work.

I heard that my contribution of the babysitting costs are not tax deductible. Is that true?

Also, would my ex-wife be able to deduct the babysitting fees claiming the childcare is necessary for her to work even though my contribution is part of that childcare cost?

Answer:

This answer only includes general divorce help for men since I am only licensed to practice in Oklahoma and am thus unable to provide any financial advice on divorce on the laws in other states.

Also, you need to consult with a licensed CPA or a tax attorney for specific advice on divorce and taxes.

While I have not seen your divorce decree, I believe the issue will be whether the babysitting can be qualified as work related childcare expenses. It may be possible to categorize the expense as work related childcare.

In that event, I believe that you should be able to take advantage of the Childcare Tax Credit. I would suggest writing “work related childcare” in the memo line of the check that you submit to your ex-wife for babysitting, assuming that it is actually work related.

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Please understand that my opinions are based upon the limited facts that you provided to me. For a more in depth discussion on financial advice on divorce, I urge you to contact a family law attorney, along with your CPA or tax attorney.

To set up an appointment with a Cordell & Cordell mens divorce attorney, including Brock Ellis, an Associate Attorney in the Oklahoma City, Oklahoma, office, please contact Cordell & Cordell.

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