When parents share joint custody in Florida, determining who claims the child on taxes can sometimes lead to disagreements and misunderstandings. Understanding how IRS rules, tax deductions, and exemptions apply to your specific parenting arrangement can help you avoid disputes with the other parent related to child tax credits.
If you are wondering “Is child support taxable?“, have questions about federal and state tax returns, or you’re curious about who specifically can claim the tax benefits with 50/50 custody, contact a Tampa time-sharing attorney at Quinn & Lynch, P.A. today. We can help you understand your rights as a parent, including your rights to certain child tax benefits. Call 813-223-7739 to schedule a consultation.
If You Have Joint Custody, Who Claims the Child on Taxes?
The parent qualifying as the “custodial parent” under federal tax law is the one parent who claims the children as dependents. As the IRS explains, “Generally, the custodial parent is the parent with whom the child lived for a longer period of time during the year.”
The IRS doesn’t recognize shared custody, joint custody, or 50/50 custody, so here is how the IRS treats divorced parents with 50/50 parenting time. When two parents share equal parenting time, then the parents can come to an agreement on who will claim the child on tax returns each tax year.
Many parents agree to alternate years. Alternate years simply mean that one year, one parent will claim the child on their tax return, and the next year, the other parent will claim the child on their tax return.
How the IRS Treats Divorced Parents
The IRS will only allow one parent to claim a child on their tax return as a dependent, meaning that divorced or separated parents will have to decide who will claim the child as a dependent on their taxes each tax year. If both parents claim the same child as a dependent, then the IRS will determine which parent claiming dependents takes priority.
The Custodial Parent Should Claim the Child as a Dependent
Normally, the custodial parent is the one allowed to claim a child as a dependent on their tax return. A custodial parent is the parent with whom the child lived for the majority of the year. Typically, one of the parents will have 183 overnights, while the other parent has 182 overnights. The one parent with 183 overnights is the custodial parent entitled to federal and state tax deductions and exemptions. If one child spends equal time with both parents, the IRS will typically deem the parent with the highest adjusted gross income as the custodial parent.
According to IRS regulations, dual custodial parents don’t exist. There is no such thing as joint custody. However, it does have specific rules built into the tax code. Only one of the parents claims a child on their taxes, but not both.
Determining Dependency Exemptions
While it’s normal for the custodial parent to claim a child for a dependency exemption, the parent can waive their rights to claim the child on taxes. Parents can also agree to alternate years to claim the tax benefit, allowing the noncustodial parent to claim the tax benefits every other year.
Parents sharing custody of multiple children can also decide who will claim the child on their taxes each year and split the benefits or agree to another system in which both parents ultimately receive a significant tax credit, depending on what makes more sense for the situation.
For example, if a couple has three children, they can agree to a system in which one parent claims a child each year, the other parent claims a different child, and they alternate which parent receives the tax incentives for the third child each year.
If the parents agree that the noncustodial parent can claim the child, the other parent must complete IRS Form 8332, which is then attached to the custodial parent’s tax return. Clear communication with the other parent and proper documentation is key to ensuring compliance with IRS regulations and minimizing issues related to child tax credits for those with equal parenting time in Florida.
Common Types of Tax Credits Available to Divorced Parents
There are several types of tax credits available to divorced parents in Florida. These include:
- Child Tax Credit: offers up to $2,000 per qualifying child.
- Child and Dependent Care Credit: a tax break for parents who pay for childcare while working or seeking employment.
- Head of Household Status: can result in a higher standard deduction and more favorable tax brackets.
- Earned Income Tax Credit: reduces the amount of taxes owed for low to moderate-income working parents.
When Should You Speak With a Tampa Family Law Attorney Concerning Child Tax Benefits?
If you are unsure about who should claim the child on taxes, need help understanding IRS rules, or want to ensure that your custody and tax returns are properly documented, then you need to contact a Tampa family law attorney. We understand federal and state tax rules and can help you understand your eligibility to claim the tax benefit or benefits associated with your child.
When the Custodial Parent Doesn’t Qualify for a Child Tax Credit
Generally, the custodial parent should be able to qualify for child tax benefits, but this is not always the case. For example, a custodial parent may not qualify for a child tax credit if:
- Their income exceeds the threshold outlined by IRS rules
- They have agreed to let the non-custodial parent claim the same child as a dependent that year
- The child is not a qualifying child according to the IRS
When One Parent’s Financial Contribution is More than Half of the Child’s Expenses
When one of the parents financial contribution to the child exceeds more than half of the child’s expenses, that parent may be eligible to claim the child as a dependent. This scenario typically strengthens the custodial parent’s position if they are providing the majority of financial support.
Proving Parental Rights to the IRS
To prove parental rights to the IRS, you can provide documentation such as court orders, divorce decrees, or custody agreements that specify parenting time arrangements. These legal documents typically outline which parent receives the benefits.
The Role of a Tampa Timesharing Attorney in Resolving Tax Disputes Between Divorced Parents
A Tampa timesharing attorney can help interpret IRS rules and ensure compliance with court orders regarding claiming children as dependents.
Additionally, they may facilitate negotiations between parents to reach agreements on tax returns and assist in drafting or amending custody agreements to reflect these decisions.
Our Tampa divorce lawyers can help you understand federal tax law and help you negotiate better tax benefits with the other parent. We understand how difficult it can be to co-parent with an ex, which is why we strive to make the process as stress-free and as beneficial as possible.
Contempt for Parenting Plan Agreements
When two parents establish a parenting plan, they are legally bound to the provisions of the parenting plan agreement. Couples who share custody tend to include a provision outlining which parent is able to file the child as a dependent on their taxes each year.
If one parent repeatedly disobeys the parenting plan by wrongfully claiming their child as a dependent on their taxes each year, then that parent can be charged with contempt of court for parenting plan violations.
Tampa Family Law Attorney
At Quinn & Lynch, P.A., we are committed to providing compassionate and effective legal representation to help clients through the divorce process. If you have any questions about time sharing in Florida or the tax implications associated with shared custody, we are happy to help.
Our Tampa female divorce attorney team is proud to offer our clients with personalized solutions to their unique needs, providing advice and legal support regarding various divorce-related issues. On staff, we have experienced:
Call our law firm at 813-223-7739 or contact us via our website to schedule a consultation.
