Navigating tax matters after a divorce can be complex, especially when it comes to claiming children as dependents. At Hobson & Hobson, P.C., we understand the importance of clarity and precision in these matters, ensuring our clients in Atlanta, Canton, Marietta, Alpharetta, Milton, Roswell, and Duluth are well-informed and protected. This article provides a comprehensive overview of the rules, best practices, and professional guidance for claiming children on taxes after divorce in Georgia.

Understanding IRS Rules: Who Claims the Child?

A common question we address is: in a divorce who claims the child on taxes? The Internal Revenue Service (IRS) provides clear guidelines:

• Custodial Parent Priority: The parent with whom the child lives for more than half the year (the custodial parent) is generally entitled to claim the child as a dependent for tax purposes. This includes eligibility for the Child Tax Credit, which can be worth up to $2,000 per qualifying child for the 2024 tax year (IRS Child Tax Credit).
• Definition of Custody: The IRS defines the custodial parent as the one who has the child for the greater portion of the calendar year. The child must also receive over half of their support from the claiming parent and have lived with them for more than half the year.
• Form 8332: If the custodial parent wishes to allow the non-custodial parent to claim the child, they must sign IRS Form 8332, releasing their claim to the exemption (IRS Form 8332).

Georgia-Specific Guidelines and Legal Precedents

While federal law governs tax exemptions, Georgia courts have their own approach:

• Primary Custody and Tax Claims: Under Georgia law, the parent awarded primary physical custody typically claims the child as a dependent. This is reflected in most divorce decrees and custody agreements.
• Court Limitations: The Georgia Supreme Court has ruled that state courts cannot award the federal income tax exemption to a non-custodial parent (Blanchard v. Blanchard). Courts are not authorized to impose tax liability or reduce federal income tax receipts (Georgia Supreme Court Ruling).
• Modification Actions: If custody arrangements change, courts may shift the right to claim the child tax credit to the new primary custodial parent.

Exceptions and Special Arrangements

Despite these general rules, there are exceptions and opportunities for flexibility:

• Alternating Years: Divorce decrees can specify that parents alternate years in claiming the child, or divide claims among multiple children.
• Non-Custodial Parent Claims: The non-custodial parent may claim the child if:

1. The parents are divorced or legally separated.
2. Both parents provided over half of the child’s support.
3. The child was in the custody of one or both parents for more than half the year.
4. The custodial parent signs Form 8332.

• IRS Recognition: Only arrangements properly documented and filed with the IRS are recognized. Informal agreements may not be honored.

Common Disputes and How to Resolve Them

Disputes over who claims the child on taxes are unfortunately common, especially when divorce decrees are vague or circumstances change:

• Unclear Agreements: Ambiguity in divorce documents often leads to both parents attempting to claim the child, triggering IRS audits or delays.
• Changing Circumstances: If a child’s living arrangements change, or if a parent fails to meet support obligations, the right to claim may shift.
• Resolution: The best approach is clear, documented communication and adherence to the divorce decree. When disputes arise, consulting with a family law attorney or tax professional is essential.

Professional Guidance: How We Help

At Hobson & Hobson, P.C., our attorneys leverage over 30 years of combined experience to guide clients through these complex issues. Our approach includes:

• Drafting Clear Agreements: We ensure divorce decrees and custody agreements specify tax arrangements, reducing the risk of future disputes.
• IRS Compliance: We advise on the proper use of Form 8332 and ensure all documentation meets IRS standards.
• Modification Support: If life changes require a modification of custody or tax arrangements, we represent clients in court to protect their interests.
• Maximizing Benefits: Our team helps clients understand and maximize available tax benefits within federal and state guidelines.
• Technology-Driven Solutions: We utilize advanced legal technology to streamline document management and communication, ensuring efficient and transparent service.

Best Practices for Divorced Parents in Georgia

To avoid tax-related conflicts and maximize benefits, we recommend the following:

• Document Everything: Keep detailed records of custody arrangements, support payments, and where the child resides throughout the year.
• Communicate Early: Discuss tax filing plans with your co-parent before tax season to prevent duplicate claims.
• Consult Professionals: Work with family law attorneys and tax professionals who understand the nuances of Georgia and federal law.
• Update Agreements as Needed: If your custody or support situation changes, update your legal documents promptly.
• Stay Informed: Tax laws and credits can change. Stay current with IRS updates and Georgia legal developments (IRS Newsroom).

Recent Trends and 2024 Updates

• Increased Scrutiny: The IRS has increased scrutiny of duplicate claims for dependents, making accurate documentation more important than ever.
• Child Tax Credit Changes: For 2024, the Child Tax Credit remains at $2,000 per child, but legislative proposals could impact future years (Tax Policy Center).
• Technology in Family Law: Firms like ours are leveraging technology to help clients track custody days and manage documents, reducing errors and disputes.

Frequently Asked Questions

In a divorce who claims the child on taxes?

Generally, the custodial parent claims the child. However, the non-custodial parent may claim the child if the custodial parent signs IRS Form 8332 releasing the exemption.

Can parents alternate years claiming the child?

Yes, if specified in the divorce decree and properly documented with the IRS.

What if both parents claim the child?

The IRS will use tie-breaker rules to determine which parent is eligible. This often results in delays and possible audits.

Can Georgia courts award the tax exemption to a non-custodial parent?

No. Georgia courts cannot override federal law, but they can encourage parents to agree on arrangements and document them properly.

What should I do if my circumstances change?

Contact your attorney to modify your custody agreement and update your tax arrangements to reflect the new situation.

Conclusion

Claiming children on taxes after divorce in Georgia requires careful attention to both federal and state rules. At Hobson & Hobson, P.C., we are committed to providing clear, innovative, and client-focused guidance to help you make informed decisions during challenging times. Our expertise, combined with advanced technology and a supportive approach, ensures your parental rights and financial interests are protected.

For more information or to schedule a consultation, visit Hobson & Hobson, P.C..

References & Resources:

• IRS Child Tax Credit
• IRS Form 8332
• Georgia Supreme Court Ruling
• Tax Policy Center
• IRS Newsroom
• Hobson & Hobson, P.C.

Sarah Hobson

Attorney Sarah Hobson at Hobson and Hobson, P.C. are powerful advocates for those who fight for better futures for those going through divorce and custody law matters.