Who can claim the children as dependents on taxes after divorce?

Divorce brings about numerous changes, and one aspect that can become incredibly complicated is taxes. Before the divorce, the couple would typically file joint tax returns and enjoy the benefits of various deductions and credits they qualify for as a family unit. However, after divorce, a question arises: who can claim the children as dependents on taxes? At Atticus Family Law, we understand the complexity of this issue and aim to provide you with an overview of the general guidelines. 

Understanding the IRS Guidelines

The Internal Revenue Service (IRS) has established guidelines that determine which parent can claim children as dependents for tax purposes post-divorce. In most cases, the custodial parent, or the parent with whom the child spends the majority of their time, is the one who can claim the child as a dependent. However, exceptions exist.

Custody Agreements and Tax Claims

In some cases, custody agreements specifically outline which parent can claim the child. This agreement must be in writing and meet certain requirements set forth by the IRS. It is essential to ensure that all necessary provisions are included in the divorce decree or separation agreement.

Exemptions and Credits

Claiming the child as a dependent on taxes allows for various exemptions and credits that can significantly impact your tax return. These include the dependency exemption, earned income credit, child tax credit, and childcare credit. However, the custodial parent can transfer these benefits to the noncustodial parent by filling out and submitting Form 8332.

Minnesota Specific Rules or Exemptions

Minnesota generally follows the federal tax law when it comes to claiming children as dependents after a divorce. However, there might be specific situations or exemptions applicable in Minnesota that can affect your eligibility to claim your child. Always consult with a knowledgeable family law attorney to understand your specific circumstances better.

Exceptions and Special Situations

Various exceptions and special situations could affect a parent’s eligibility to claim a child. For instance, if parents have joint custody and share an equal amount of time with the child, the parent with the higher adjusted gross income typically claims the child.

Moreover, if a noncustodial parent provides more than half of the child’s support during the year, they may be able to claim the child as a dependent. This is only possible if the custodial parent signs a written declaration (IRS Form 8332) that they will not claim the child as a dependent for the year.

Contact a Child Custody Lawyer for Help

Determining who can claim the children as dependents on taxes after divorce can be a complex process that requires a thorough understanding of IRS guidelines, custody agreements, and potential state-specific rules. Each case is unique, and it’s crucial to consult with a professional to understand how these rules apply to your situation.

You can rely on us to guide you through this challenging aspect of your post-divorce life. Our commitment to transparency ensures you’ll understand every step of the process, empowering you to make informed decisions about your future. Please contact us at Atticus Family Law for a consultation today.