27 Mar Which Parent Can Claim Dependency Exemptions after a Divorce?
Tax day is rapidly approaching, and many people in the Hackensack area are getting their information in order to bring to their accountant. If you’ve recently gone through a divorce, it can make filing your income taxes more complicated, especially if you have dependent children. One issue that you must resolve with your former spouse involves who gets to claim a dependency exemption for the children on their tax return.
The IRS only allows one parent to claim a dependency exemption for each child in any given tax year. Unfortunately, splitting this exemption with your ex isn’t an option. When you go through your divorce, it’s a good idea to discuss this matter as part of your settlement agreement.
In general, the parent who has primary child custody typically gets to claim the children as dependents. That being said, it is possible to negotiate who gets to claim the dependency exemption, especially when you have multiple children. In many situations, the exemption is split between parents as long as the non-custodial parent is current on child support payments. When there is only one child, it’s common for parents to alternate the exemption from year to year.
However, there are certain considerations that should be evaluated when deciding which parent takes the exemption. If one parent is in a tax bracket (either very high or very low) where the exemption won’t make a significant impact on their tax savings, then the parent who will more significantly benefit should take the exemption.
In order for the non-custodial parent to claim the dependency exemption, there are two conditions that must be met:
- The custodial parent must sign IRS Form 8332 (Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent)
- The non-custodial parent must attach this form to their tax return.
Jeffrey M. Bloom has more than 25 years of experience handling these types of tax issues for individuals going through a divorce. He can help you negotiate a settlement that will maximize these dependency exemptions.
Please contact the Law Offices of Jeffrey M. Bloom using the form at the top right side of the page or call (855) 208-3650 today to schedule your divorce consultation. Mr. Bloom serves clients in Hackensack, West New York, Ridgewood, and throughout Hudson and Bergen Counties, New Jersey.