Now that tax season is in full swing, you may be hoping to get a nice tax refund to help you catch up on bills or make a major purchase. Part of your expected refund may be based on deductions, exemptions, and credits based on claiming a child as a dependent. If you are divorced, however, you must first determine who gets to claim the child as a dependent for tax purposes. Noth your divorce decree and the complex rules established by the Internal Revenue Service (IRS) may impact who can claim a child on their tax return. Understanding these rules is crucial to ensuring compliance with federal and state tax laws. To help you stay in compliance, a Murfreesboro divorce attorney at
Bennett | Michael | Hornsby explains some basic rules relate to who gets to claim a child for tax purposes if the parents are divorced.
What Are the Tax Benefits of Claiming a Child?
Because claiming a child as a dependent can provide significant tax benefits, the right to claim a child can be the cause of a dispute around tax time. Consider some of the financial benefits you may receive if you are able to claim a child on your federal tax return, such as:
- Up to a $2,000 credit for the Child Tax Credit.
- Up to a $4,213 credit for the Earned Income Tax Credit (EITC).
- Up to a $3,000 credit for the Child and Dependent Care Credit.
- The ability to file as Head of Household, which offers lower tax rates and a higher standard deduction than filing as Single.
- Eligibility to claim the child as a dependent for medical expense deductions and education credits.
Check Your Divorce Decree
The first thing you should do is check your divorce decree or custody agreement because it may specify who will claim the child each year. If so, that document likely governs. For example, your divorce decree may dictate that you and your former spouse alternate years, with one parent claiming the child in even years and the other parent in odd years.
If you are basing your right to claim your child for tax purposes on a divorce decree or custodial agreement, you may need to file IRS Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent, along with your federal tax return.
If the agreement does not specify who gets to claim the child, parents should work together to determine the best approach. If one parent earns significantly more and benefits more from the tax credits, it may make sense for that parent to claim the child and compensate the other parent in another way.
What Are the IRS Rules for Claiming a Dependent Child?
While it is crucial to check the terms of your divorce decree or custodial agreement, you should also understand the IRS guidelines. The general rule is that the custodial parent, meaning the parent who has been designated the Primary Residential Parent (PRP) in Tennessee, has the right to claim the child. If there has been no official designation, the IRS usually considers the parent within whom the child spends more overnights to be the custodial parent for tax purposes.
If both parents try to claim the child on their tax return, the IRS will use their “tie-breaker” rules to determine which parent is entitled to claim the child. Under the tie-breaker rule, the child is treated as a qualifying child of:
- The parent, if only one of the persons is the child’s parent,
- The parent with whom the child lived the longest during the tax year, if two of the persons are the child’s parent and they do not file a joint return together,
- The parent with the highest AGI if the child lived with each parent for the same amount of time during the tax year, and they do not file a joint return together,
- A non-parent, if no parent claims the child as a qualifying child although he or she may do so and only if the non-parent’s AGI is higher than the highest AGI of any parent who may claim the child, or
- The person with the highest AGI, if none of the persons is the child’s parent.
What Happens If Both Parents Claim the Child?
If both parents claim the child on their tax return, the IRS will reject one of the claims. The parent who filed first may have their return accepted initially, but if the other parent files and disputes the claim, the IRS will initiate an investigation and if one parent is found to have claimed the child improperly, they may be required to amend their return which could result in the loss of a refund, a tax obligation, and penalties.
Contact a Murfreesboro Divorce Attorney
If you have additional questions about who is entitled to claim a child for tax purposes in Tennessee, consult with an experienced Murfreesboro divorce attorney at Bennett | Michael | Hornsby as soon as possible. Contact the team today by calling 615-898-1560 to schedule your free appointment.
- Trial By Jury or Judge: Understanding Your Options in a Tennessee Criminal Case - March 21, 2025
- Can an Adoptee Access Their Adoption Records in Tennessee? - March 7, 2025
- Who Gets to Claim a Child for Tax Purposes If the Parents Are Divorced? - February 20, 2025
