The dedication of which dad or mum is eligible to designate a toddler or kids as dependents for tax functions following a marital dissolution is commonly a posh matter. Usually, the dad or mum with whom the kid resides for the higher portion of the 12 months is entitled to say the dependent. Nonetheless, a number of exceptions and particular IRS guidelines might supersede this common guideline, together with concerns associated to custody agreements, earnings ranges, and the particular phrases outlined in divorce decrees.
Readability concerning dependency claims is essential as a result of it instantly impacts every dad or mum’s tax liabilities and potential entry to varied tax credit, such because the Youngster Tax Credit score and the Earned Revenue Tax Credit score. Traditionally, disputes over dependency claims have been a standard supply of rivalry between divorced dad and mom, resulting in the event of detailed authorized and regulatory frameworks designed to offer clear tips and determination mechanisms.
