Who Gets the Tax Benefit When Custody Is Shared Equally?
While the benefits of joint physical custody for children have been shown by research to be better in the long run for children, other issues, such as who gets to claim the child on a tax return when there’s joint custody, have been problematic. As a general rule, the right to declare a child as a dependent has always gone to the parent with whom the child spends the most amount of time. But what if the child splits his or her days and nights equally with both parents? If the parents can’t agree on how the deduction is allocated, what happens?
Joint Physical Custody Continues to Be Preferred Ruling
Over the past quarter of a century, the incidence of a court awarding joint physical custody has increased dramatically, from about 13% in 1985 to about a third of the time in recent studies (34%).
Claiming the Child for Taxes When There’s Joint Physical Custody in Texas
Ideally, when the parties negotiate custody and visitation, they’ll also address the issue of tax dependency. The parties have the legal right to fashion a wide range of solutions, particularly when the custody is split evenly. The Internal Revenue Service follows the “183 night” rule, which grants the deduction to a parent if the child spends 183 or more days in that household.
Under IRS rules, if the custody is truly equal, the parent with the higher adjusted gross income (AGI) is typically deemed to have the right to declare the child as a dependent. However, the custodial parent can waive that right and grant it to the non-custodial parent by filing IRS form 8332. The parties may also agree to alternate the deduction.
Contact DTX Family Law for Sound Advice Regarding Custody in a Texas Divorce
At DTX Family Law, we built our reputation and practice by focusing on the needs and best interests of our clients. We have an extensive knowledge and understanding of Texas divorce laws and procedures. We’ll carefully explain your rights and options, as well as your chances of success, so that you can make good decisions for you and your family. Chrysandra is board-certified by the Texas Board of Legal Specialization, an honor earned by less than one of every ten family law attorneys in the state. To schedule an appointment with a proven and effective Texas family lawyer, visit our website or call our offices at 940-566-0606.
Handling Divorce and Family Law Matters throughout Denton and the surrounding communities, including Denton, Collin, Wise, Tarrant and Cooke counties and the municipalities of Keller, Euless, Hurst, Colleyville, Bedford, Crowley, Lake Worth, Benbrook, Haslet, Saginaw, Watauga, Richland Hills, White Settlement, River Oaks, Forest Hill, Kennedale, Westover Hills, Lakeside, Pelican Bay and North Richland Hills