Life after divorce comes with no shortage of challenges. Even routine stressors like income taxes become more complex than before. If you’re coming up on the first tax season after your divorce, you might be wondering which parent can claim your child for tax purposes.
The answer depends on your circumstances. Here’s a closer look.
General Rule for Dependency Deductions
One major factor in who can claim a child on income taxes is which parent has more physical custody:
- Custodial Parent: The child lives with this parent for more than half the year
- Noncustodial Parent: The child lives with this parent for the rest of the year
The custodial parent is usually entitled to claim the child as a dependent. This is the default in Michigan. The IRS will also assume this is your arrangement, unless you indicate otherwise.
Can a Noncustodial Parent Ever Claim the Child?
While the custodial parent is usually the one who claims a child as a dependent, this is not an absolute rule. If the following four conditions are true, the noncustodial parent may claim the child:
- The parents are divorced or legally separated
- Together, the parents supplied more than half of the child’s financial support
- The child spent at least half the year in the custody of one or both parents
- The custodial parent has signed IRS Form 8332
IRS Form 8332 works like a release. A custodial parent may sign it to relinquish their right to claim the child as a dependent for a specific tax year (or multiple years). Then, the noncustodial parent may claim the child as a dependent. They must attach Form 8332 to their tax return when they do so.
Court Orders May Change Arrangements
In a child custody case that is decided by a court order, a Michigan family court may specify which parent has the right to claim the child on their taxes.
Before making any decisions about whether to claim your child as a dependent, you should consult your court order. If you don’t follow it, you could face legal penalties.
How Child Support Can Impact Dependent Deductions
Often, the custodial parent is the one who provides the child with the majority of their financial support over the year. However, if the noncustodial parent contributes more financially, the parents may decide to let the noncustodial parent claim the child instead.
Confused About Who Claims Your Child on Taxes?
It’s not always easy to know which parent gets to claim their child as a dependent for tax purposes. For instance, if you have equal custody and you both support your child financially, factors like which parent has the highest adjusted gross income may come into play.
The family law team at The Gucciardo Law Firm understands just how complicated post-divorce taxes can be. We’ll take the time to get to know you and answer your questions about whether you can claim your children on your taxes. Get in touch to book your consultation today!
