Who Claims the Children as Dependents for Tax Purposes?
About this time of year, separated parents sometimes ask us who can claim the children on their taxes. Many parents simply agree that the parent that would get the most benefit can claim the children. Other parents have provisions in their orders directing the parties to claim or not to claim the children on their taxes. But what about when there is no agreement?
The position the IRS takes is that the person having the children more than half the year can claim the children. IRS Publication 504.
This means that the custodial parent, or the parent the children live with primarily, can claim the exemption.
So what happens if your orders say that one parent gets to claim the children and the other parent files first, claiming the children? Realistically, the parent that should have been able to claim the children is going to have a hard time. They will need to work with the IRS, the other party, and possibly an attorney well-versed in tax law to correct the issue. The parent could also file an enforcement action or sue for the lost benefit. The easiest way to avoid the issue? Speak with the other parent, or make sure you file first.