Tax considerations in child custody cases

On behalf of Stange Law Firm, PC posted in Child Support on Friday, April 20, 2018.

When people are involved in child custody cases in Illinois, there are some important things that they should know about how it might affect their taxes. Child custody may affect the dependency exemptions and the available credits that people can claim on their income tax forms.

Parents may receive several tax benefits when they claim their children as dependents. They may receive the dependency exemption, the child tax credit, the earned income credit, and the credit for child care expenses, and they may be able to claim head of the household status. All of these benefits can save people thousands of dollars on their taxes or lead to larger refunds.

It is not possible for both parents to claim the same child. The custodial parent who provided the child with more than half of his or her support during the year is deemed to be the one who can claim the child for tax purposes. If the noncustodial parent either provided more than half of the support or there is an agreement for him or her to claim the child, the other parent can fill out a Form 8332 to allow the other parent to claim the child.

People who are going through child custody and support cases might want to discuss the impact on their taxes with their attorneys, who may be able to negotiate agreements about claiming the children so that their clients might receive some of the tax benefits. They may also help their clients to reach child custody and visitation agreements that are in the best interests of the children.

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