Claiming Your Child on Taxes: A Guide for Divorced or Separated Parents
Deciding who should claim a child on taxes can be a complex issue for divorced or separated parents. In this blog post, we’ll explore the rules and considerations involved in this important matter.
Who Can Claim the Child Tax Credit?
The child tax credit is a valuable tax break that can reduce your tax liability. Generally, the parent who has custody of the child for the majority of the year (more than 183 nights) is eligible to claim the credit. However, there are exceptions to this rule.
Tiebreakers
In cases where both parents have joint custody or the child spends equal time with each parent, the following tiebreakers apply:
– The parent with the higher adjusted gross income (AGI) can claim the credit.
– If the AGIs are equal, the parent who can provide a signed Form 8332, Release of Claim to Exemption for Child by Custodial Parent, from the other parent.
– If neither of the above applies, the parent who had the child for the most months during the year can claim the credit.
Considerations for Non-Custodial Parents
Even if you don’t have primary custody of your child, you may still be able to claim the child tax credit in certain situations. For example, if you pay more than half of the child’s support and the other parent doesn’t file a tax return, you may be eligible for the credit. However, you must meet specific criteria to qualify for this exception.
Seeking Professional Help
If you’re unsure who is eligible to claim your child on taxes, it’s advisable to seek professional help from a tax advisor or accountant. They can review your specific situation and help you determine the best course of action. Filing taxes can be a daunting task, and for such a topic, it’s ideal to let licensed agent to help out. Remember, it’s crucial to file your taxes accurately and on time to avoid any potential penalties or complications.
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