Child Custody and Tax Exemption – How Does It Work in Case of Divorced Couples

Child Custody and Tax Exemption 2

The married couple normally claim taxes together. When they do so, they are automatically claiming the kids as dependents.

However, when these couples plan to separate, they should decide who gets to claim the expenses for their kids as an all-important exemption while filing their taxes.

Child Dependent Claim after the Divorce

A general divorce rule states that the parent that has the custodial claim of their child/children will automatically have their kids as the dependents in the tax files. They can claim up to $5,000 as an exemption while filing for the taxes every year. If the spouses are on the best terms, then the parent with the child custody can release their tax entitlement to the other parent for tax exemption claims.

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Child Custody and Tax Exemption 1

The parent with the child custody can release their claim to the other spouse even after the divorce by using the concerned form as set by the particular law of the state. The parent with the child custodial claim should release this form when the other spouse plans to file their taxes for that particular year. In case of electronic claims, another Form should be attached with the primary form for the tax exemption claim by the other parent.

The Law Offices of Thomas Stahl is a team of experienced attorneys that can handle all kinds of divorce cases, including child custody cases in Maryland. They can be your helping source and understand how exactly the tax filing and child expenses work together. You can visit their Facebook page to connect and engage with them.

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Child Tax Exemption Claim

Here are some of the factors that should be considered while claiming for the tax exemption by the parent with the child custody.

  • The child should be the kid of the parent, who files tax every year.
  • The child should not be more than 19 years of age
  • The child should share the same address with that of the primary parent for at least 6 months before the time of tax filing.
  • The child has not provided for half of their support during the current tax year.

The dependency exemption can be claimed by filling out Form 8332. The exemption can be released by the parent with the child custody to the parent with the non-custody of the child for a year, or the alternative years, as per their preference, and this should be mentioned in the form.

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Things to be claimed by child custody tax

Here are some factors that make you eligible for the child custody tax claim.

  • Child tax credit
  • Any educational expenses
  • Additional child tax credit
  • Dependent credits

In case of joint custody, both the parents can claim the child custody tax exemption. During such cases, the judge will decide the best way of making it beneficial for both the parents by decreeing either an alternative tax exemption claim or some other means. If there is the involvement of more than one child, then the tax exemption claim will be distributed equally between the parents, in case of both the odd and even number of children to a couple.

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