Who Claims Child on Taxes with 50/50 Custody

What Are the Common Tax Benefits Available to Divorced Parents?

The two main types of tax benefits available to taxpayers are tax deductions and tax credits. A tax deduction reduces your amount of taxable income. Suppose your total income for the tax year is $75,000, and you can claim $10,000 in deductions. Your total taxable income would be $60,000. (65,000?)

A tax exemption is similar to a deduction. Before 2018, parents could claim a dependency exemption for their children. This is no longer available, at least through the year 2025.

A tax credit reduces the amount of your final tax bill. Suppose you have $60,000 in taxable income. Your tax bill for 2025 would be about $5,200. If you could claim $5,000 in tax credits, your tax bill would only be $200.

The following benefits are often available to divorced parents claiming dependents for tax purposes:

• Head of household status: This is an alternative to filing a tax return as a single person. It provides better tax rates and a higher standard deduction. Taxpayers who care for a qualifying child may claim this status.
• Child tax credit: This is a partially refundable tax credit, which means that if the amount of the credit is greater than your tax bill, the IRS will pay you the difference with your tax refund.
• Child and dependent care credit: This is a nonrefundable credit for taxpayers who care for a qualifying child.
  Earned income tax credit (EITC): This is a refundable credit for low-to moderate-income individuals, especially those with qualifying children.

Who Gets to Claim a Child on Taxes With Joint Custody?

In a joint custody arrangement, the IRS typically allows the custodial parent, meaning the one who has physical custody of the child for more than half of the year, to claim child-related tax benefits. The IRS tiebreaker rule applies when parents have 50/50 equal custody.

Defining Custodial Parent

IRS regulations do not recognize the concept of “dual-custodial parents.” The IRS defines the “custodial parent” as the one who has 183 or more overnights with the child in a year.

What Are the Rules for Claiming a Child on Taxes With Shared Custody?

The IRS has established specific rules to determine which parent with shared custody may claim the child as a dependent.

Understanding IRS Tiebreaker Rules

The IRS tiebreaker rule applies when a child qualifies as a dependent for more than one taxpayer.

• If one parent has physical custody for more than half the year—at least 183 overnights—that parent can claim the child.
• If both parents have equal custody—182.5 days each—the parent with the higher adjusted gross income (AGI) can claim the child.

This rule ensures that only one taxpayer can benefit from claiming the child for tax purposes.

Can a Noncustodial Parent Claim a Child on Their Taxes?

The noncustodial parent may claim the child for tax purposes with the custodial parent’s consent. The custodial parent can give consent by signing IRS Form 8332. The noncustodial parent submits the form with their tax return.

What Happens if Both Parents Claim a Child on Their Tax Returns?

The IRS allows one claim per child for each tax year. If two parents file their tax returns independently and claim the same dependent, the IRS will reject one or both returns.

The rejection occurs automatically for electronic filings. For paper returns, the IRS sends a formal notice stating that the return has been flagged.

Can Parents Mutually Agree Who Can Claim a Child on Tax Returns?

Parents can agree on which parent claims a child on their tax returns. IRS guidelines generally favor the custodial parent, but parents with shared custody can establish arrangements like:

• Alternate years for claiming the child or children; or
• Each parent claims different children.

What Happens if There is a Disagreement?

Clear communication and written agreements are essential in avoiding disputes over claiming a child on taxes. Parents should seek legal advice and work with the IRS to resolve any disagreements. An experienced family law attorney can offer valuable advice and help set clear guidelines in the custody arrangement—regarding which parent is eligible to claim the child on their taxes. On the other hand, a negotiation can also be reached if both parents can discuss and agree upon who will claim the child on taxes. An attorney can play a vital role in such cases. They can facilitate productive discussions, determine that any agreement reached is legally sound and in the child’s best interest, while also formally documenting the agreement to prevent future misunderstandings.

Why Work With Cordell & Cordell

Cordell & Cordell has years of experience providing legal advice and guidance to individuals and parents dealing with divorce and other family law disputes. The law firm offers educational and online resources relating to parents’ legal and financial rights.

Additional Resources

• Legal Custody Vs. Physical Custody: Legal custody deals with the right to make decisions affecting the child. Physical custody determines where the child lives and ensures that each parent has parenting time with the child.
• Joseph Cordell on the Importance of Legal Custody: Child custody is about more than parenting time and overnight visits. It’s about having a say in the major decisions affecting the child’s life.
• Disparity Between Child Support and Custody Enforcement: Courts devote far more resources to enforcing child support court orders, with far fewer options for enforcing custody rights.