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Understanding the tax implications of filing taxes after a divorce can be daunting, especially if you have children. Who is eligible to claim the child as their dependent? What happens if there is more than one child? These are some of the questions that arise when it comes to filing taxes with children after divorce. Let's look at what you need to know about filing taxes with your kids post-divorce.
Who Can Claim the Child As a Dependent?
The Internal Revenue Service (IRS) has rules determining who can claim a child as a dependent on their taxes. The general rule is that the parent with whom the child resides for the most significant part of the year can claim them as a dependent.
For example, if one parent has custody of their two children five days per week while they alternate visitation with the other parent on weekends, then that custodial parent could claim both children as dependents on their income tax return.
However, if you and your former spouse share physical custody and neither of you has primary custody, this rule does not apply, and both parents are eligible to claim the child as a dependent.
What If Parents Share 50/50 Custody?
If both parents share equal custody of the child throughout the year, they are not allowed to claim the child simultaneously. Many parents find a compromise by claiming the child every other year or agreeing on who can claim the child.
What If There Is More Than One Child Involved?
If you have more than one child, it's important to understand which parent will be claiming each dependent on their taxes. Generally speaking, only one parent can claim any dependent at a time.
So if you have two or more children, deciding who will claim each one is essential before filing your taxes. This will ensure no errors are made when you file your return and prevent any potential IRS audits down the road.
If parents have more than two children, it is possible to claim one child each, then alternate claiming the third child every other year.
Why You Should Seek Professional Guidance
It's important for parents going through this process to understand how these rules work to ensure they are following all applicable laws and regulations set forth by the IRS. When in doubt, it's always best practice for clients facing these questions to seek professional advice from an experienced attorney who can help navigate this maze of filing taxes after divorce with children involved.
With proper guidance and understanding of all relevant laws and regulations, you can ensure you accurately report your financial information come tax season! For more information or advice for filing taxes this year, our experienced attorneys at Orshan, Spann & Fernandez-Mesa are eager to help. Contact us today. (305) 853-9161
