April 15 fast approaches and with it – questions about who claims the child of divorce, separated, or never married parents on their tax return. Absent an agreement between the parties, the parent with more custodial time claims the child. In shared custody situations, when the child spends an equal amount of nights each year with both parents, the parent with the higher adjusted gross income claims the child.
The Internal Revenue Service provides guidelines for those who claim the child: Publication 504: Divorced or Separated Individuals. When in doubt, consult with a qualified, experienced accountant.
Sometimes, the custodial parent may agree that the non-custodial parent can claim the child on their tax return. This could be part of a divorce settlement or other negotiation between the parties. If parties come to this type of agreement, they should fill out and sign IRS Form 8332: Release/Revocation of Claim to Exemption for Child by Custodial Parent. This form is then submitted to the IRS with the tax return to prove the right to claim the child.
Because multiple tax benefits exist related to children, familiarizing yourself with the rules and obtaining advice from a qualified, experienced accountant will assure the timely acceptance and processing of your tax return.
