If I pay child support can I claim my child on taxes? Not necessarily, but possibly. The right to claim a child defaults to the custodial parent, even if the other makes support payments. That right can be transferred if the custodial parent agrees.
A Seattle child support lawyer can help you understand your options and work toward a fair outcome.
Claiming a Child on Taxes: Terms to Know
The matter of child support is overwhelming, and leaving it to your legal team can bring you peace of mind. Your attorney can explain the process in digestible terms, so you are aware of what is happening without having to navigate the legal details. The same applies to the rules for claiming a child on taxes as a divorced parent.
Familiarity with related terms can help you better understand the tax implications that come with child custody and child support.
- Child Custody refers to where and with which parent a child lives after a divorce. If the child lives primarily with one parent, that person is the custodial parent, and the other is the non-custodial parent.
- Child support is the money one parent pays the other to ensure the child’s needs are met. Typically, the non-custodial parent pays support. In Washington State, the courts work to divide the financial responsibility as equitably as possible.
- Dependent is the term the Internal Revenue Service (IRS) uses to describe someone (often a child) who depends on the taxpayer in question (often a parent) for substantial financial support.
- “Claiming” a child as a dependent on their taxes allows the parent to receive certain tax benefits.
Other Related Custody Terms to Know
In some divorces, one parent has “sole physical” custody of the child. The child lives with that parent most of the time. The parents may still share “legal” custody of the child and make important decisions for the child together.
Sometimes, the parental arrangement is joint custody. Parents share legal custody, and the child spends equal or close to equal time with each parent. Joint custody does not always mean the child’s time is divided exactly 50/50 between parents.
Claiming a Child on Taxes as a Divorced Parent
IRS tax rules for claiming a child as a dependent when parents are divorced, separated, or live apart do not allow for division. Only one parent can claim the child for tax purposes. According to the IRS rules, “custodial parents generally claim the qualifying child as a dependent.”
The rules define the custodial parent as the one the child lives with for “the greater number of nights during the year.” The child must live with the parent for more than half of the year.
Though you pay child support, claiming a child on your taxes may not be an option if you do not meet the IRS standards for being the custodial parent. This could even be the case in joint custody arrangements.
When Child Custody Is 50/50
You might have an exact 50/50 custody arrangement with your ex. In this situation, the IRS deems the person with the “higher adjusted gross income” as the custodial parent.
If the child qualifies as a dependent for either parent, IRS Publication 504 establishes tie-breaker rules.
How a Non-Custodial Parent Can Claim the Child as a Dependent
There are ways for you, as a non-custodial parent, to claim the child on taxes. The custodial parent can complete Form 8332, releasing you from the claim exemption.
You must attach that form to your tax return. This exemption should be included in your divorce decree if it is part of your divorce agreement.
Parents may also decide to “take turns” claiming the child. This could be a solution for 50/50 arrangements as well. Still, custodial parents must fill out the exemption form. Another option for families with multiple children is for parents to agree that each claims certain kids.
Form 8332 Refusal
If the custodial parent refuses to sign Form 8332, but you believe you should have the right to claim your child on taxes, connect with an attorney. You may have grounds to file a motion in family court. The IRS does not weigh in on divorce matters.
To prepare for this possibility, keep careful records of the money you contribute to your child’s life beyond the ordered support payments. The amounts could include medical or dental costs, school tuition, clothes, food, and other necessities, and entertainment.
Child Support Taxability, Tax Credits, and Tax Deductions
If you pay child support, the payments are not tax-deductible. For the receiver, child support payments are not taxable as income. Further, claiming a child as a dependent gives the parent the child tax credit, worth up to $2,200 per child. Form 8332 can be applied to other tax benefits, including the child tax credit.
Since Washington Courts strive to create equitable financial situations for both parents in a divorce, they should consider these additional tax implications regarding child support. Representation from an experienced, knowledgeable child support attorney is the best way to ensure the court applies these considerations in your divorce proceedings.
Get Help With All Child Support Matters
Often, issues relating to children and finances create the highest emotions and opportunities for conflict in a divorce. Child support combines those two issues. To protect your rights, your finances, and your relationship with your children, get help from an attorney.
Whether you are working out a parenting or support arrangement or see a need for child support modifications in Washington State, our team is ready to help.
We Have Answers
If you pay child support, claiming your child on your taxes is possible, but not automatic. Reach out to Dellino Family Law to get a firm answer to that question and others.
Our compassionate, experienced team knows how complicated child support, taxes, and divorce in general can be. We’re ready to help you get clarity and work toward solutions.
