Financial Planner

Answer: C - During a divorce the courts determine child support. The support is based on the ratio of each parent’s income, the percentage of time the child spends with each parent, and the amount of alimony payments made to the custodial parent. The payer cannot deduct funds from taxes nor does the recipient include the funds as income. The child can be counted as an exemption by only one parent, but the exemption can be traded back and forth each year. Only the custodial parent is entitled to claim both the child and the dependent care credit.