After a Divorce, Who Claims the Kids on Their Taxes?
Tax season can bring unexpected stress for newly divorced parents. For example, who gets to claim the children? Financially, this deduction can make a big difference. Emotionally, it can feel like one more point of contention after an already difficult process. If you are navigating custody arrangements in New Jersey, connect with a Somerset County family lawyer in order to make informed choices and avoid unnecessary conflict.
The IRS (not New Jersey) Sets the Rules
While custody arrangements are governed by New Jersey law, the tax rules for claiming children are determined by the IRS. The IRS generally gives the dependency exemption and related credits to the custodial parent, meaning the parent with whom the child spends more nights during the year.
If one parent has the child for more than 50% of the overnights, that parent is the custodial parent for tax purposes. The IRS rules focus strictly on time spent with the child, not labels.
The custodial parent can choose to allow the noncustodial parent to claim the child for tax purposes. To do so, they must sign IRS Form 8332, which releases the exemption to the other parent. This form can apply for one year or multiple years and must be attached to the noncustodial parent’s tax return.
This arrangement is often part of divorce agreements. For example:
- Parents alternate years
- Each parent claims certain children
- One parent claims all children in exchange for another financial agreement
It’s important to note that if the custodial parent does not sign Form 8332, the IRS will not allow the noncustodial parent to claim the child. This is true even if the divorce judgment says they can.
Claiming a child can provide several financial advantages. However, some tax benefits, like Head of Household filing status or the Child and Dependent Care Credit, can only be claimed by the custodial parent, even if they release the dependency exemption.
Paths Forward When Parents Disagree
Disputes are common, especially when both parents believe they are entitled to claim a child. If both parents claim the same child, the IRS will investigate, typically awarding the exemption to the custodial parent unless an official release is provided.
Courts in New Jersey can also step in. If one parent refuses to sign Form 8332 even though the divorce decree requires it, a judge may enforce the agreement. Likewise, if circumstances have changed, a modification may be appropriate.
A knowledgeable Somerset County family lawyer can help you review your settlement, negotiate fair terms, and enforce or modify tax-related provisions when needed. With the right approach, you can secure the future you want and reduce conflict.
Are you hoping to claim the kids on your taxes after you divorce? Individuals in New Brunswick, North Brunswick, Piscataway, Edison, Somerset County, and Middlesex County need to plan for their financial future when they separate from a spouse. Connect with the legal team at the Law Offices of Kisha M. Hebbon, LLC to protect your financial stability. Schedule a confidential consultation to learn more.
