Divorce is an ugly situation that none of us want to face. However, life happens and we must move on from soured relationships. With the widely quoted statistic that 50% of all marriages end in divorce, inevitably there will be questions about how one claims depends and pays for taxes during this time of the year. Many unmarried couples are also now having children and perhaps have some similar questions. H&R Block has sponsored this post and the giveaway that follows it. At the bottom are details for how to enter the giveaway.
Q: My son lives with me for half the year. The other half of the year, my son lives with his dad. We are not married, but we have shared custody. Who gets to claim my son?
The parent that lives with the child the longest is considered the custodial parent for tax purposes and is generally entitled to claim the exemption (additional requirements must be met). The number of nights that the child spent with each parent are counted and compared when determining which parent the child lived with the longest during the year. The custodial parent who is entitled to claim the child may always release the exemption to the noncustodial parent using Form 8332. If certain requirements are met, a divorce decree that contains the same information as Form 8332 may be used instead to release an exemption to the noncustodial parent.
Tiebreaker Rules for Parents
If the child lives with both parents an equal amount of time (for example, they live together all year), and the parents file separate returns, the parents can decide who will claim the child. If they can’t decide, and each try to claim the child, the IRS will use its tiebreaker rule to determine which parent has the right to claim the dependency exemption. The IRS will allow the parent with the higher adjusted gross income (AGI) to claim the child.
Tiebreaker Rules in Other Cases
If a child is the qualifying child of 2 or more people, the following rules apply to determine which person is entitled to claim the child:
- If 1 of the individuals is the child’s parent:
- If the other taxpayer’s AGI is higher than that of the parent, they may choose which one of them claims the child.
- If both individuals claim the child, the parent has the superior claim.
- If the other taxpayer’s AGI is not higher than that of the parent, the child is treated as a qualifying child only of the parent; the other taxpayer may not claim the child even if the parent is willing for that taxpayer to do so.
- If no parent can claim the child as a qualifying child, the person who had the highest AGI claims the child. They cannot choose.
Q. I pay child support. Does that affect my taxes in any way?
No, child support is not considered taxable income to the recipient and is not a tax deduction for the payer. Also, a noncustodial parent is not automatically entitled to claim a child’s exemption because of the payments.
You can get a free 30-minute consultation with a tax pro at an H&R Block office near you, and determine what’s best for your situation. Or, you can file at home online with H&R Block tax prep software that guarantees accuracy and the maximum refund. Plus, H&R Block will look at your tax returns from the past three years to see if there is tax refund money you missed.
Giveaway Details!
What are we giving away? 10 copies of H&R Block At Home Premium Federal Edition
How: There are two ways to enter this contest:
- Leave a comment below letting us know your favorite thing about tax season.
- Follow Yakezie on Twitter and tweet this message: I entered the H&R Block giveaway on #yakezie 10 copies to win, RT to enter! http://bit.ly/gxM9Je
- Subscribe to Sweating The Big Stuff here.
When: This giveaway expires March 19th at 11:59pm EST and winners will be chosen via random.org and contacted soon after.
Thanks for participating.
I don’t have kids but with so many children of divorced or unmarried couples, I can see where this can potentially be a contentious issue. Thanks for clearing this up, but thankfully, I don’t have kids!
I am an adult child of divorced parents. I remember that my parents alternated years for which one got to claim me as an exemption. It seemed to work out just fine.
Hello, Robert. That’s interesting that you would know those type of details about your parent’s divorce. I’m going through a divorce myself but feel that I’m going to leave those details between my wife (ex-wife) and me.
Wow, I can see how this can get complicated! Maybe pre-marriage counseling needs to stress the effects of how complicated taxes can become after a divorce. I wonder if that would reduce the divorce stats?!
getting my refund.
First of all, I’m so impressed with H&R Block’s online out reach initiative! They’ve seriously canvassed the market!
Divorce makes me wonder. Why not just live happily together instead? Unless you want to have kids, is marriage necessary? Hmmmm. Another topic to discuss!
10 Federal files = like a $500 giveaway. Nice!
Is marriage necessary? Hmm. Probably not, but it is the ultimate sign of commitment. In any case, you’re damned if you do and damned if you don’t these days…
april 16 and no more stress
For this year, we get three extra days as the deadline is moved to April 18 due to the emancipation day in Washington DC falling on April 15.
wow I never thought about who claims a child when the parents are divorced. I really hope that the divorce rate goes down in our country.
It’s not likely that it will, Charlie. The courts are making it easier for divorces to occur and our culture seems to glorify the lack of commitment to others. I mean, our culture practically tosses sex in every type of media, and there seem to no longer be any definite roles of men and women in relationships anymore. It is what it is.
I never knew it was that complicated. Good assessment.
My favorite thing about tax season is the refund!
I am a child of divorce–it does get ugly. And then they both divorced again!
One year they both claimed my brother, and I believe each of my parents got into trouble with the IRS for it. Ouch.
As long as I’m not paying, I’m good even if my refund is zero. Getting a large refund is not good as well since it’s similar to loaning your money to the IRS for 0% interest.
My favorite thing about tax season is when it is over and done!
My prior tax strategy was to pay zero, I have changed that to a goal of 35%.
My favorite thing about tax season is also when it is over!
My favorite thing about tax season is getting the refund!
cookster77@aol.com
My favorite thing about tax season is once it’s over-my hubby throws out tons and tons of papers…wish i could say the refund!
My favorite thing about tax season is that I can receive a better understanding of where I stand. I know if I am spending too much on a particular area, that I need to slow down or stop and concentrate on other areas of my financial investments or purchases. H&R has a great system & process for getting taxes calculated and computing algoritihims that are important and needed for consistent tax return results. I really think tax season is important, and a true baseline for making financial decisions throughout the year as well as in the future. With a wife and 3 kids I cannot play games, and need to make sure I can afford all financial commitments, without overspending in any one area. Hope this gives all readers a little peace of mind to assist with financial planning and importance of doing taxes.
double claiming a single social security number (minor child) is actually one of the top reasons triggering audits. there is no cakewalk as the post goes to prove
That’s really complicated! Divorce is really ugly; I also hope that the divorce rate goes down in our country.