Who claims the child on taxes in a 50/50 custody? Custodial parents get to claim children on tax returns. Even in a 50/50 custody arrangement, there are additional factors that make one parent the custodial parent in the eyes of the Internal Revenue Service (IRS). If those factors create a “tie,” and both parents can be considered the custodial parent, the IRS has tie-breaker rules.
There are other tax arrangements that could appeal to you and your ex. A Seattle child support lawyer can explain the complex IRS rules and your options, and help you arrive at a favorable resolution.
How 50/50 Custody Plans Work
A 50/50 plan is a form of joint custody. In joint custody, children live with each parent part-time and parents share in making important child-related decisions. Those part-time divisions may not be perfectly equal. The children often spend more nights in one parent’s home than the other.
A 50/50 custody plan is one in which parents still share in decision-making, and the children spend equal time living with each parent. The specifics of the arrangements can vary.
For example, children may alternate weeks with each parent. In other arrangements, they may divide the week, spending three days with one parent, then four with the other, then four with the “first” parent and three with the other. In a true 50/50 split, the children spend exactly half the tax year, or 182.5 days, with each parent.
The Custodial Parent Claims the Child on Taxes
According to the IRS explanation for claiming a child as a dependent when parents are divorced, separated, or living apart, only one parent can claim a child on taxes in a 50/50 or any other custody arrangement. One parent can hold the title of “custodial,” and that parent can claim the child.
IRS rules account for 50/50 situations, stating that if children “live with each parent for an equal number of nights during the year, the custodial parent is the parent with the higher adjusted gross income.” If both parents still qualify to claim a child on taxes, there are tie-breaker rules.
The IRS will reject one or both tax returns if both parents file independently and each claims the same child as a dependent.
IRS Tie-Breaker Rules Can Determine Who Claims the Child
Tie-breaker rules are complicated, and make having representation from an attorney experienced in IRS regulations and child custody and support laws critical. IRS Publication 504, Divorced or Separated Individuals, establishes these rules.
Claiming a Child Leads to Tax Benefits
When you “claim” a child on your taxes, you identify that child as your “dependent.” According to the IRS, dependents are relatives, often children, who rely on you (the claimant) for financial support. Parents can claim tax benefits for a child.
The Child Tax Credit provides a tax break of up to $2,200 for each child. You may also qualify for the Child and Dependent Care Credit if you paid for childcare.
When a Non-Custodial Parent Can Claim the Child as a Dependent
The custodial parent claims the child on taxes in a 50/50 custody arrangement, per IRS rules. Still, the IRS allows parents to reach an alternative agreement, as does the Revised Code of Washington (RCW) 26.19.100.
According to the statute, the custodial parent can “sign the federal income tax dependency exemption waiver.” Through the IRS Form 8332 waiver, the custodial parent authorizes the non-custodial parent to claim the child as a dependent.
The non-custodial parent must include the completed form with their tax return. If the parents make this agreement during divorce proceedings, the waiver should be included in the divorce decree.
Additional Alternative Solutions
Clearly, the matter of child support is overwhelming, and leaving it to your legal team protects your rights as a parent and your and your child’s financial stability. An experienced attorney can help facilitate other agreements to settle who claims the child on taxes in a 50/50 custody.
You and your ex may agree to each claim the child or children on alternating years. If you share more than one child, you may decide to each claim different children. Of course, you must complete and submit all required documentation.
Tax Decisions Have Financial and Legal Implications
To avoid consequences, you must file your taxes according to IRS regulations. You can face an accuracy-related penalty for “negligence or disregard of the rules or regulations.” You can incur interest on unpaid portions of your taxes or be fined. If the IRS deems your error intentional fraud, you can also face legal penalties.
Parents may disagree about who has custody of the child. You may be a non-custodial parent paying ordered child support and providing extensive additional financial support. You may feel you deserve the tax credit rather than the custodial parent. Don’t claim your child as an act of defiance. Instead, connect with an attorney.
Modifying Child Support Agreements
You may have grounds to seek child support modifications in Washington State. We can help make that determination and build your potential case. To support the effort, keep careful records of how much you spend on your child.
Document medical expenses, costs for entertainment, what you pay for their food, clothes, other basic needs, and anything else. It may be possible to adjust the agreement. The custodial parent may need to sign the tax waiver form, or we can advocate for reducing the required payment amount.
Our client testimonials show how we have found solutions to even the most difficult divorce situations. We have a comprehensive understanding of Washington State laws and IRS regulations. We put all of that knowledge and experience into your case.
We Fight for Fair Solutions to Complex Situations
There are so many details to consider when going through a divorce, especially one involving children.
Dellino Family Law can take care of them all, including settling who claims the child on taxes in a 50/50 custody situation. Connect with us to avoid costly mistakes and get answers you can trust.
