When navigating divorce proceedings, understanding tax implications becomes critical – especially regarding who claims the child on taxes. This decision impacts both parents’ financial futures and requires careful consideration of IRS rules, custody agreements, and state laws. At Hobson & Hobson, P.C., our Atlanta family law attorneys help clients resolve these complex matters while protecting their parental rights and financial stability.
IRS Rules for Claiming Dependents After Divorce
The IRS provides specific guidelines for determining who claims the child on taxes after separation:
- Custodial Parent Priority: The parent with whom the child lives for more than 50% of the year (the custodial parent) generally claims the dependency exemption unless they release this right in writing using IRS Form 8332.
- Tiebreaker Rules: If custody is split exactly 50/50, the IRS prioritizes the parent with:
- Higher adjusted gross income
- Legal custody outlined in court orders
- Multiple Children: Parents may split claims for different children if custody arrangements vary.
Example: If a child spends 300 nights annually with Mother and 65 with Father, Mother retains the right to claim the child unless she signs Form 8332 allowing Father to do so.
How Custody Agreements Affect Tax Claims
Georgia courts often address tax dependency exemptions in divorce decrees or parenting plans. Common approaches include:
| Arrangement Type | Tax Implications |
|---|---|
| Sole Physical Custody | Custodial parent typically claims exemption |
| Joint Physical Custody | Parents may alternate years or split claims |
| High-Income Disparity | Lower-earning parent may retain exemption to maximize tax benefits |
Our attorneys at Hobson & Hobson, P.C. frequently negotiate provisions that:
- Specify claim rotation schedules
- Require Form 8332 completion
- Tie exemptions to child support compliance
Exceptions and Special Circumstances
1. Non-Custodial Parent Claims
The custodial parent can transfer the exemption to the non-custodial parent through:
- Signed IRS Form 8332
- Court-ordered agreements (Georgia Child Support Guidelines)
2. Divorced Parents Remarrying
New spouses cannot claim stepchildren unless:
- The child lives with them >50% of the year
- Biological parents relinquish rights
3. College Students
Parents may claim dependent exemptions for full-time students under 24 if providing >50% financial support, regardless of physical custody.
Resolving Disputes Over Tax Claims
When conflicts arise about who claims the child on taxes, Hobson & Hobson, P.C. recommends:
- Review Court Orders: Verify if existing agreements address exemptions
- Mediation: Our family mediation services help parents negotiate fair solutions
- Contempt Actions: For violations of court-ordered arrangements
- IRS Dispute Process: File Form 886-H-DEP if improper claims occur
Case Study: We recently assisted a client whose ex-spouse improperly claimed their child for three consecutive years. Through contempt proceedings and IRS coordination, we recovered $8,200 in improperly claimed credits.
Tax Implications to Consider
| Credit/Exemption | 2025 Value | Eligibility Factors |
|---|---|---|
| Child Tax Credit | $2,000 per child | Income < $200k (single) / $400k (joint) |
| Earned Income Tax Credit | Up to $7,430 | Income < $63,398 (3+ children) |
| Child Care Credit | 20-35% of $3k expenses | Work-related childcare costs |
Georgia-specific considerations:
- State income tax deductions mirror federal rules
- Georgia DHS enforces child support compliance
- Exemption claims affect HOPE Scholarship eligibility
FAQ: Who Claims the Child on Taxes?
Q: Can both parents claim the same child? A: No – the IRS prohibits duplicate claims. Violations trigger audits and penalties.
Q: What if custody changes mid-year? A: The parent with >6 months physical custody claims the exemption for that tax year.
Q: Do tax claims affect child support? A: In Georgia, support calculations don’t factor in tax benefits unless specified in court orders.
Q: How does shared custody work? A: Parents may alternate years or split exemptions for multiple children. Document agreements in parenting plans.
Q: What if my ex refuses to sign Form 8332? A: File a motion to enforce the divorce decree. Our child custody attorneys can petition for compliance.
Protect Your Financial Future
Determining who claims the child on taxes requires balancing IRS regulations, custody arrangements, and family finances. Hobson & Hobson, P.C.’s 30+ years of family law experience ensures clients achieve solutions that:
- Maximize tax advantages
- Comply with Georgia laws
- Preserve parental relationships
Schedule a consultation to discuss your case with our Atlanta divorce attorneys. Let our expertise guide you through this critical financial decision while protecting your children’s best interests.
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.
