Question: Jane earns $35,000 a year and receives non-taxable alimony and child support. She shares custody of their 2-year-old son with Mark. Their son lives with Jane Monday through Friday and stays with Mark on weekends. Jane and Mark, however, cannot agree on who should claim their son on their income tax returns. Which parent is entitled to claim their son – Jane or Mark?
Answer: According to §152(e), the parent the child spends the most time with – also known as the custodial parent – generally has the right to claim the child as a dependent. In Jane’s case, since their son lives with her during the week, she is considered the custodial parent. This means Jane is the parent entitled to claim their son as a dependent on her Form 1040, U.S. Individual Income Tax Return, as long as she meets the other requirements (§152). Mark, on the other hand, could only claim their son if Jane agrees in writing to release her dependency claim (Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent, is usually used for such purpose).
It should be noted that even if Jane does agree in writing to allow Mark to claim their son as a dependent for tax purposes, Jane retains the right to file as head of household under §2(b), to claim the child and dependent care credit under §21 and earned income credit (EIC) under §32. More information can be found on the IRS’s website.
About National Association of Tax ProfessionalsThe National Association of Tax Professionals (NATP) is the largest association dedicated to equipping tax professionals with the resources, connections and education they need to provide the highest level of service to their clients. NATP is comprised of over 23,000 leading tax professionals who believe in a superior standard of ethics and exemplify professional excellence. Members rely on NATP to deliver professional connections, content expertise and advocacy that provides them with the support they need to best serve their clients. The organization welcomes all tax professionals in their quest to continually meet the needs of the public, no matter where they are in their careers.
The NATP headquarters is located in Appleton, WI. To learn more, visit www.natptax.com.
Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing.