When you make the decision to file for divorce or you are served papers from your spouse, it can be incredibly emotional. Unfortunately, however, you’ll find that in addition to managing your emotions, you’ll need to make a number of important decisions regarding your future, including many legal and financial matters. One matter you may not have considered is which parent will be eligible to claim the child on their taxes in the event that custody is divided equally between the parents. As such, the following blog explores what you should know about how this matter is determined and your options if this reflects your circumstances. In addition, you’ll discover the importance of working with Morris County family lawyers to help guide you through these overwhelming and complex matters.
How Does the IRS Determine Who Can Claim a Child When Custody Is Equal?
It’s important to understand that, even when custody is equal between the parents, the IRS will still determine the “custodial parent.” Generally, the custodial parent will be the parent who has custody for the majority of the year, which is generally at least 183 nights. In instances in which parents have exact, equal time with the child, the IRS will go by the tie-breaker rule. As such, in true 50/50 custody splits, the parent with the higher adjusted gross income can claim the child.
As such, while you and your spouse may have split custody, this does not mean that you get split tax benefits. The IRS will only allow one parent to claim the child. If both parents attempt to claim the child on their taxes, the IRS will automatically deny one or both of the returns before examining which parent has the right to claim the child based on who is considered the custodial parent or which parent has the higher adjusted gross income.
Can Parents Alternate Who Can Claim the Child?
In some instances, parents may agree to alternate who can claim the child on their taxes. If this is something that both you and your ex agree to, you should ensure that it is clearly included in your divorce decree or custody order to ensure that no future disputes regarding this matter arise. An easy way to include this is to designate one parent to claim the child for even years, while the other claims the child on odd years.
You should note, however, that this process is not as simple as simply refraining from including the child on your taxes each year. Instead, in the years the non-custodial parent claims the child, the custodial parent must complete IRS Form 8332, Release/Revocation of Claim to Exemption. The non-custodial parent must attach this form when submitting their tax return in order to legally claim the child for tax purposes.
As you can see, navigating the custody and tax implications can be an incredibly difficult and complex matter. That is why it’s imperative to connect with an experienced attorney with Leslie Law Firm, LLC, to help you understand your rights and fight for the best possible outcome for your unique situation. When you need help, do not hesitate to contact our team today to learn more.
