While we are not tax experts, we frequently discuss the tax implications during and after a dissolution of marriage.
If parties are still married by the 31st day of December in any given year, then they must file taxes as married. They have the option to file either married-jointly or married-separately. We always encourage clients to discuss the tax implications with their tax professional prior to determining which way to file their taxes.
How do we decide who claims the minor children as dependents after divorce?
Typically, your divorce Decree will spell out which parent can claim the minor child or children as dependents on their taxes in which years. Often, if there is more than one child, parents will agree to split the minor children claimed. If there is only one child, the parents generally trade the years that they claim the child as a dependent.
If there is no agreement or language in the Decree, what are my options?
The parent who has the child the majority of the year will get to claim the child on his/her taxes.
Are there any additional forms that need to be completed to claim my child as a dependent?
If parents rotate claiming the minor child, then the custodial parent will have to execute a Form 8332. You can obtain this form from your tax professional or on the IRS website. This form allows for the other parent to claim the minor child in their respective year.
What about head of household status?
That depends. If one parent is the custodial parent, they may claim head of household status. If the parents share 50/50 custody, neither parent can claim head of household status unless there are multiple children and a split custody situation. In that scenario, the parents would both be able to claim head of household as to the respective child but be prepared to provide proof.
These are very important issues to clarify in your divorce Decree to avoid miscommunications and tax pitfalls down the road. Make sure that your Decree clearly spells out how taxes will be handled as relates to the minor child(ren). It is better to take care of this issue during your divorce rather than have a headache when tax season comes.
What if child support is not up to date?
Most Decrees have a clause that requires child support to be paid in full by a certain date for the payor to claim a child as a dependent on his/her tax return. Tax refunds will also be garnished if there is unpaid child support.
McGill Law is here to help whether you are contemplating a divorce or separation, going through the process, or thinking about a modification of your existing Decree.