Which parent gets to claim the children’s dependency deduction on tax returns after a Tennessee divorce?

Come tax time, properly claiming your dependents on a Tennessee tax return can be perplexing, even in the simplest situations. In the case of a shared child custody agreement, the matter gets muddied even further because only one parent can claim the dependent exemption. Whether you’re the primary residential parent or the alternative residential parent in Memphis, a child custody attorney can help you make sense of the process, so you don’t make mistakes on your tax return that can come back to haunt you later.

The ability to claim your child as a dependent can result in significant deductions and have a financial impact, which means it’s important to know what you’re legally allowed to do. One crucial detail to note is that claiming a child as a dependent is not the same as seeking a deduction for paying child support, which you cannot do, just as the parent who receives child support is not required to count payments as income.

How Child Custody in Tennessee Impacts your Tax Return

Absent an agreement and court order to the contrary, the primary residential parent of the children gets to claim the dependency exemption on a federal tax return. But this doesn’t always have to be the case.

If the primary residential parent fills out and signs an IRS form 8332, then it can be filed with the other parent’s tax return. For instance, even if you’re not the parent with primary custody, if the other parent fills out this form and gives it to you to file with your return, you can claim your child as a dependent and be entitled to any deduction associated with that exemption.

In many ways, this is only fair because recent Tennessee child custody laws require child support to be allocated based off both parents’ earning capabilities.

Other Tax Filing Issues Associated with Tennessee Child Custody

Another part of your federal tax return you’ll want to address is which parent can claim the childcare credit. If you pay for childcare to be provided so that both you and the other parent can work or look for work, you may qualify for a tax credit of up to 35 percent of qualifying childcare expenses. Every deduction and tax credit helps, and typically, it is the custodial parent who receives this break. Knowing this can help you if you want to negotiate for the childcare tax credit and/or the dependent exemption, depending on your situation.

How a Memphis Child Custody Attorney Can Help

What happens when both of you cannot agree on how your Tennessee child custody agreement impacts your taxes? That’s when a Memphis child custody attorney can step in to provide some alternatives. For instance, maybe the two of you want to claim the dependent exemption on alternating years.

It’s up to you, but whatever you decide, a Memphis child custody attorney can help you negotiate the details. If you are a non-custodial parent and cannot obtain authorization from the primary residential parent, an attorney can help you file your paperwork in efforts to secure a court order for the exemption.

To learn more, see Divorce and Taxes.

We Provide Compassionate Child Custody Representation to Memphis Families

It’s normal to have questions about child custody, especially during tax time. At Miles Mason Family Law Group, we understand the impact a child custody arrangement can have on your life. That’s why we’re here to offer our financial knowledge and understanding of Tennessee’s divorce laws. When you need a Memphis child custody attorney, our team can offer sound legal advice, so you can rest assured you’re acting in the best interests of your children. Contact us today.