When tax season approaches, you may be wondering who gets to claim the children if custody is split 50/50. Please continue reading to discover who can claim the child on taxes when custody is equal, and how our Tempe Child Custody Lawyers can help protect your interests.
Who Gets to Claim a Child on Taxes When Custody is Equal?
First and foremost, it’s crucial to understand that only one parent may designate a child as a tax dependent for any given year. Determining which parent may claim a child as a dependent is primarily governed by federal tax regulations, which often override the terms of a divorce decree or a family court order. The Internal Revenue Service (IRS) employs specific standards that can supersede informal parental arrangements. While the child’s primary residence is a major consideration, it’s not the sole criterion.
Claiming a child as a dependent carries significant benefits. It essentially opens the door to tax perks like the Child Tax Credit and other allowable deductions. Additionally, claiming the child can even enable the parent to file as Head of Household. When parents can’t agree on who gets to claim the child, it can complicate things, often leading to IRS audits or penalties.
When establishing which parent holds the legal right ot claim the child, the IRS relies on the concept of the “custodial parent.” It’s crucial to understand that this designation under tax law may not align with the legal custody labels assigned by an Arizona court.
The IRS defines the custodial parent as the party with whom the minor child physically resides for more than half of the calendar year. This calculation is based strictly on the number of nights spent, rather than any formal legal terminology. This parent is typically granted the default right to claim the child for tax purposes, even when parents share custody.
Can Parents Agree to Alternate?
Generally, parents have the option of alternating which parent gets to claim the child for tax benefits. However, this agreement has to comply with IRS standards. Court orders and separation agreements usually address this issue to prevent future disputes.
To legally transfer the claim for a dependency exemption, the custodial parent must release the claim to the noncustodial parent. This can be achieved by filing IRS Form 8332, “Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent,” and an equivalent written declaration. It should be noted that this form is required even if the divorce decree or separation agreement states that the noncustodial parent can claim the child. The properly completed 8332 must be attached to the noncustodial parent’s tax return.
As you can see, parents have the option of sharing the tax benefit by alternating the years they claim the child or by having each parent claim different children if there are multiple. At Weingart Law Firm, we are prepared to help you satisfy IRS rules and safeguard your interests. Connect with our firm today to schedule a consultation.
