Question

Jerome is recently divorced and has two children that live with his ex-wife. What deductions should Jerome claim on his tax return?

A) Child support payments
B) Spousal support payments
C) Caregiver deduction
D) Child care expenses

Answer 1

Jerome should consult IRS guidelines or a tax professional to accurately determine his eligibility for deductions, as child support is not deductible, spousal support is only deductible for agreements executed before 2019, and caregiver deductions usually do not apply to non-resident dependents. Child care expenses could be deductible if the conditions are met.

Step-by-step explanation:

Jerome, who is recently divorced with two children living with his ex-wife, has a few deductions that he may be eligible to claim on his tax return. Child support payments are not deductible, so option A would not apply. Option B, spousal support payments, are only deductible if they are part of a divorce agreement executed before 2019. Assuming Jerome's divorce is recent and occurred after 2018, spousal support would not be deductible, in line with changes made by the Tax Cuts and Jobs Act of 2017.

Regarding options C and D, the caregiver deduction can sometimes apply to taxpayers who are caring for a dependent, such as an aging parent, but not for dependents who are not physically living with the taxpayer, in most cases. However, child care expenses can sometimes be deducted if Jerome is paying for the care of a qualifying child under age 13, to allow him to work or look for work. He would need to use Form 2441 to calculate the credit and include it with his tax return.

It is important for Jerome to consult the IRS guidelines or a tax professional to understand all of the specific rules and regulations that might affect his particular circumstances.

Answer 2

Jerome is likely unable to deduct child support payments or claim a caregiver deduction. Spousal support payments are deductible under specific conditions, and child care expenses may qualify for a tax credit if they meet certain criteria.

Step-by-step explanation:

The question asks which deductions Jerome should claim on his tax return related to expenses after his divorce. Specifically, the options are A) Child support payments, B) Spousal support payments, C) Caregiver deduction, and D) Child care expenses. It's important to note that tax laws can vary by country and over time, but generally in the United States:

• Child support payments are not deductible for the payer and are not taxable income for the recipient.
• Spousal support payments might be deductible for the payer and taxable for the recipient if they meet certain requirements and the divorce agreement was in place before 2019.
• The caregiver deduction is not a commonly recognized deduction in the context of individual tax filings in the U.S.
• Child care expenses may be eligible for a credit if Jerome is working or looking for work, and the children qualify as his dependents for tax purposes even though they do not live with him.

Therefore, Jerome may be able to claim child care expenses but likely cannot deduct child support payments or claim a caregiver deduction. Whether he can deduct spousal support payments depends on the timing and terms of his divorce agreement.