Got Your Money: Income Tax Dependency Exemptions
It's getting near the end of the year, which means that it will soon by time to start thinking about taxes. If you are getting divorced, one of the things you need to think about is who gets the dependency exemptions for your children.
Divorce decrees often address which parent is allowed to take the tax dependency exemption for their children. If the decree is silent, then the IRS regulations govern.
If a parent has the child in their care for more than half of the year (183 days or more), they are entitled to claim the dependency exemption on their income taxes. The other parent (non-custodial parent) may not claim the dependency exemption unless:
• there is a written agreement between the parties
• the Judgment and Decree orders that the non-custodial parent can claim the dependency exemption for the children on their income taxes.
The custodial parent must also sign a form from by the Internal Revenue Service (IRS) giving the dependency exemption to the non-custodial parent.
If the parents have equal parenting time, the parent with the higher income is entitled to claim the dependency exemption. More information can be found in Publication 504 from the IRS.
To discuss parenting time, dependency exemptions, or any family law issue, contact Kruse Family Law, PLLC at 612.231.9865 or email email@example.com