Can I Claim My Daughter on My Taxes if I Share Joint Custody?
When parents share joint custody of their daughter, they may need legal guidance regarding which parent has a right to claim her as a dependent child for tax purposes. Even when parents have joint custody, Internal Revenue Service regulations may still identify one parent as custodial and the other as noncustodial. Each parent may need to consult with a tax accountant or family law attorney with tax experience to receive personalized advice regarding the right to claim a daughter as a dependent for tax purposes.
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Exemptions for Dependents
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Divorced or unmarried parents might both want to claim their daughter as a tax exemption or as a qualifying child to file taxes as a head of household. If a daughter meets the IRS requirements to be the qualifying dependent of both parents, IRS regulations will generally permit only one parent to claim the child. The parent who claims the qualifying child as a dependent may be able to use a number of tax benefits, including a tax exemption, filing status as the head of household and the child tax credit. As the financial consequences can become significant, both parents should research and identify their individual rights.
Custodial and Noncustodial Parents
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When parents live apart or have divorced, one individual is often identified as the daughter's custodial parent while the other is the noncustodial parent for tax purposes, even if the parents share joint custody. To determine the custodial parent, the IRS looks at the number of days spent in each parent's home during the year. The custodial parent has the greater number of days with the child. When each parent has the child for an equal number of days, the IRS uses the higher adjusted gross income as a tiebreaker to identify the custodial parent. IRS regulations generally confer rights on the custodial parent, who may use his daughter as a qualifying child for tax-filing purposes. In some situations, however, the noncustodial parent may be able to claim the tax benefits related to the qualifying child. Whether the noncustodial parent may do so depends on the ability to meet IRS criteria, including whether the custodial parent agrees to the noncustodial parent's use of the tax benefits.
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Pre-1985 Agreement
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A noncustodial parent may be able to claim the tax benefits from a qualifying child if the custodial parent agrees. For a divorce decree or child custody arrangement signed before the end of 1984, the parents could decide in their agreement which parent would claim their daughter for tax purposes. To have the agreement apply during subsequent tax years, the parties can't have modified their original agreement to prevent the noncustodial parent from claiming the tax exemption and the noncustodial parent must pay child support of an amount specified by the IRS during each year.
Agreement After 1984
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When parents signed a divorce or child custody agreement that took legal effect after 1984 and before 2009, the custodial parent must have signed a written declaration allowing the noncustodial parent to claim the tax benefits. The declaration may be part of a divorce decree or another signed agreement between the two parties. The noncustodial parent must attach a copy of the custodial parent's signed declaration to the tax filing in order to claim their daughter as a dependent. For agreements taking effect after 2008, the custodial parent must sign IRS Form 8332 or a similar statement to release the custodial parent's right to take the child-related exemption. The noncustodial parent must attach a copy of the signed form to the tax return.
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