If you and your spouse want to maximize your tax benefits and are willing to exchange tax information, the parent that would most benefit by claiming the children as an exemption for tax purposes has the option of purchasing the deduction from the other parent by paying the other parent an amount which is equal to the difference between the tax benefit of the other parent - if that parent claimed the children, and, if the parent did not claim the children.
For example:
| Tax refund if child(ren) claimed | $ 3,000 |
| Tax refund if child(ren) not claimed | $ 2,000 |
| Difference | $ 1,000 |
If you choose to include our buyout provision, the following language will be printed with your documents.
The parent who does not have the right to take a tax deduction has the option to purchase the deduction from the other parent as follows: by March 1st of each year, the parties will determine the amount of tax savings the parent with the deduction would realize from claiming the child or children as a deduction. The parent wanting to purchase the deduction may then purchase from the other parent the right to claim the deduction for an amount equal to the other parent's projected savings. The parent purchasing the deduction must tender payment, in full, to the other parent by April 5th. Upon receipt of payment, the parent with the deduction shall execute any necessary tax forms to enable the parent purchasing the deduction to claim the deductions.