How are childcare expenses claimed when the parents are divorced?

Question

Specifically in Texas and the parents split the daycare expenses. Would you just give the yearly total and say to divide it in half?

Answer 1

Only the parent with which the child lives over half of the year can take the daycare credit.  

This is because the credit exists so the parent(s) that the child lives with can work.  Nobody cares if the parent that the child does not live can get out and work or not.

Answer 2

The custodial parent can claim the expenses paid by the custodial parent.  The non custodial parent can not claim anything.  Now I have had some clients have the non custodial parent give the custodial parent the money and the Custodial parent writes the check to the Day Care facility.  In that case the custodial parent "paid the whole amount".

Answer 3

Custodial parent can often get benefit of Child and Dependent Care benefit, but not the noncustodial parent, on federal income tax returns.  It is a tax credit to assist a custodial parent in caring for their child and maintaining their work schedule.

This is different from the dependency exemption which can be taken by the custodial or noncustodial parent if child does not provide more than half their own support, usually covered by divorce decree who claims child, unless waived by other parent with special form.