Can Both Divorced Parents Legally Claim a Child as a Dependent on Taxes-

Can both divorced parents claim a child as a dependent?

Divorce can be a complex and challenging process, especially when it involves children. One of the most common questions that arise in such situations is whether both divorced parents can claim a child as a dependent on their tax returns. The answer to this question depends on various factors, including the custody arrangement, the tax laws, and the agreement between the parents.

Understanding the Custody Arrangement

The first factor to consider is the custody arrangement between the parents. Generally, the parent who has physical custody of the child for more than half of the year is considered the primary custodial parent. This parent is typically eligible to claim the child as a dependent on their tax return.

However, if the child spends an equal amount of time with both parents, the IRS allows for a “split custody” situation. In this case, each parent can claim the child as a dependent, but only one parent can claim the child’s standard deduction, and the other parent must claim the child’s tax exemption.

Meeting the Tax Laws

The IRS has specific requirements that must be met for a child to be claimed as a dependent. The child must be under the age of 19 at the end of the tax year, or under the age of 24 if a full-time student. Additionally, the child must be a U.S. citizen, U.S. national, or resident alien.

Agreement between Parents

The IRS also requires that both parents agree to the dependency claim. If the parents cannot reach an agreement, they must file Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent. This form allows the custodial parent to release their claim to the child’s exemption, allowing the non-custodial parent to claim the child as a dependent.

Special Considerations

In some cases, the IRS may grant an exception to the general rules. For example, if the custodial parent is not claiming the child as a dependent due to a written agreement or court order, the non-custodial parent may still claim the child as a dependent.

Seeking Professional Advice

Navigating the complexities of claiming a child as a dependent can be challenging. It is advisable for parents to consult with a tax professional or an attorney to ensure they are following the correct procedures and maximizing their tax benefits.

In conclusion, while both divorced parents can claim a child as a dependent under certain circumstances, it is essential to consider the custody arrangement, tax laws, and the agreement between the parents. Seeking professional advice can help ensure that both parents are in compliance with the IRS regulations and maximize their tax benefits.