When parents are separated, divorced, unmarried, or living in different homes, one common tax question is: Can both parents claim the same child?
Generally, two parents cannot both claim the same child as a qualifying child on separate tax returns for the same tax benefits. The IRS has rules for determining which parent can claim the child when more than one person qualifies.
Understanding these rules before filing can help prevent problems with your tax return.
Only One Parent Can Generally Claim the Child
A kid may meet the requirements to be a qualifying child of both parents, but that doesn’t mean both parents can use the child to claim the same tax benefits on separate returns.
The child can affect several parts of a tax return, including certain child-related tax credits, the Earned Income Tax Credit, Head of Household filing status, and the Child and Dependent Care Credit.
There are also special rules for divorced or separated parents and parents who live apart.
Which Parent Gets to Claim the Child?
When parents don’t file a joint return, and both try to claim the same qualifying kid, the IRS has tiebreaker rules. Generally, the IRS looks first at which parent the child lived with for the longer period during the tax year.
If the child lived with each parent for the same amount of time, the IRS generally treats the child as the qualifying child of the parent with the higher adjusted gross income, or AGI.
This is why keeping accurate records of where the child lived during the year can be important.
What Happens With 50/50 Custody?
Parents sometimes assume that having 50/50 custody automatically means they can both claim the same child. That’s not generally how federal tax rules work.
Even when parents share custody, only one parent can generally use the child as a qualifying child for a particular tax benefit.
If the kid lived with each parent for the same number of nights and both parents claim the child, the IRS tiebreaker rule generally favors the parent with the higher AGI.
Can Parents Take Turns Claiming the Child?
Some parents have an agreement that one parent will claim the child one year, and the other parent will claim the child the next year.
However, an agreement between parents does not automatically override federal tax rules for every child-related tax benefit. Special rules can allow a custodial parent to release a claim so that a noncustodial parent can claim certain benefits. Form 8332 may be involved in these situations.
Importantly, releasing the claim does not transfer every child-related tax benefit. For example, different rules apply to the Earned Income Tax Credit, Head of Household status, and the Child and Dependent Care Credit.
Local Tax Can Help Determine Who Can Claim the Child
Questions about dependents can become complicated when parents are separated, divorced, unmarried, or sharing custody.
Local Tax can help review your situation and determine how the IRS rules apply to your tax return.
We can look at factors such as where the kid lived, your filing status, income, custody situation, and applicable tax benefits.
If you and the other parent aren’t sure who should claim your child, it’s a good idea to figure it out before both tax returns are filed.
Local Tax
9429 Somerset Blvd
Bellflower, CA 90706
(562) 925-2203
Contact Local Tax if you have questions about claiming a child, dependents, tax credits, or preparing your tax return.
