Can My Children be Considered Tax Deductions?

The question of children as tax deductions comes up in virtually every divorce. It involves questions of Federal Law, as well as State Law, and what is set forth in your Stipulation of Settlement.

Normally, the custodial parent, the parent that provides more than 50{d7ad8d91dcbc6c5f909cae8a9a63c8e9cbd63938c628b2b59a791ba818aca75d} of the economic necessities of the children is entitled by law to claim the children as their exemptions. That, however, can be altered by contractual agreement between the parties. That would be the Stipulation of Settlement, or even in a Judgment of Divorce. In the event that the child spends equal amounts of time with each parent, then the parent who has the higher gross income would be the one who is allowed to claim their child as a deduction.

Thereafter, the appropriate forms are going to be procured from the IRS to effectuate the division, either alternating one child from year to year, or dividing one child through one spouse, and one child for the other. In any event, it is imperative that it be clearly reduced to writing so that there is no future misunderstanding, and God forbid, problems with the Internal Revenue Service.

If you and your spouse are separated or divorced and you have one or more children, they may be applicable as a tax deduction. However, if you are unsure of which parent would be able to claim that child or children as a tax deduction, it would be beneficial to all parties involved to seek legal counsel from an experienced attorney to assist you with your questions.

If you are in need of legal counsel, please contact The Penichet Firm and we will be happy to assist you in your family and criminal law matters.