The dedication of which father or mother is eligible to designate a toddler or kids as dependents for tax functions following a marital dissolution is usually a fancy matter. Usually, the father or mother with whom the kid resides for the better portion of the 12 months is entitled to say the dependent. Nonetheless, a number of exceptions and particular IRS guidelines might supersede this basic 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 straight impacts every father or mother’s tax liabilities and potential entry to numerous tax credit, such because the Little one Tax Credit score and the Earned Earnings Tax Credit score. Traditionally, disputes over dependency claims have been a typical supply of rivalry between divorced mother and father, resulting in the event of detailed authorized and regulatory frameworks designed to supply clear tips and determination mechanisms.
