Only One Parent Can Claim a Child as a Dependent

While there are many logistical complexities when parents decide to divorce, one issue is determining who will claim children as dependents when filing taxes. Having an understanding of the implications of this determination is important as it can have a significant impact on the finances of both parents.

Talk to a Port St. Lucie family law attorney about how dependency claims are handled when parents choose to end a union. Once you share the details of your situation with a lawyer, they can guide you through the process of negotiating a fair settlement.

Rules for Claiming a Child

The IRS allows only one parent to claim a child as a dependent on their tax return each year. The primary factors that are assessed when making a determination of which parent can claim a child include the following.

• Florida does not have “Custodial parent” provision within the law. Occasionally, the parent with whom the child resides for the greater part of the year is awarded the right to claim the child as a dependent. Most often, the parents share the right to claim the child on alternating years.  The tax credit is given as income for purposes of calculating child support, so the party not claiming has a small offset or credit against child support.
• Release of claim. Some custodial parents choose to waive their right to claim a child. They do this by signing IRS Form 8332, allowing the non-custodial parent to claim the child as a dependent. This form must be attached to the non-custodial parent’s tax return.
• Divorce decree. While not always necessary, if disputes or questions arise, a divorce decree or written agreement that specifies which parent can claim a child will need to be shared.

Whoever claims the kids, there are age limitations, too. Parents can generally claim a child as a dependent until the minor turns 19. The exemption to this rule is when the child is a full-time student, then the age limit extends to 24.

Assessing Potential Tax Benefits

Deciding who will claim a child as a dependent is often part of strategic divorce negotiations. An experienced Port St. Lucie family law attorney can walk you through the possible implications of the Child Tax Credit, Earned Income Credit, and education-related tax benefits.

Waiving right to claim in order to secure separate marital assets could be part of the process. Other parents decide to share the tax benefit, with one parent taking even years and the other claiming the kids on odd years. Once a plan has been negotiated your attorney can draft agreements that clearly outline which parent will claim children, ensuring compliance with IRS rules. This can be especially important if parents plan to alternate claims each year.

Is claiming the kids on your taxes something that is important to you? The knowledgeable attorneys at Baginski, Brandt & Brandt can provide you with essential guidance, helping you reach fair agreements that maximize financial benefits. Contact us today to schedule your confidential consultation.