Written by Jonathan Breeden
One of the biggest changes families deal with post-divorce are the financial implications. Going from a two-income household to a one-income household can have a dramatic impact on your family. This includes the way you file your taxes.
As many families are aware, when you claim your child as a dependent on your taxes, you can receive the Child Tax Credit. The amount of the child tax credit can change depending on the number of children you are claiming. However, only one parent has the right to claim your shared children when you file your taxes. When you divorce, this is often one of the biggest points of contention.
When you and your child’s other parent get divorced, you may be able to claim your child as dependent on your tax return. Children may be considered dependents when they are:
Generally, parents are encouraged to work together to determine who will claim their children or child on their taxes. The parent who claims their child on their taxes will receive the Child Tax Credit. In most North Carolina divorces, the custodial parent, or the parent with which the child primarily resides, has the right to claim the child on their tax return.
However, in the event that the non-custodial parent provided at least half of the child’s financial support over the course of the year, they may also be eligible to claim the child on their taxes. For this reason, it is essential to try to work with your child’s other parent to determine which of you should claim the child on your tax return.
In many cases, when parents share custody, they will agree to alternate years of claiming the child. Others will agree that the parent with the highest adjusted gross income will claim the child.
It should also be noted that if you and your spouse are not legally divorced but are currently separated, both of you will have the right to claim your child on your tax return, as you will likely still file your taxes jointly.
There are many factors that can be taken into consideration when determining which parent will claim their child as a dependent on their tax refund. For example, your child’s age, whether you are the custodial or non-custodial parent, whether you are biologically related to the child, your income, and the amount of spousal support paid can all have an impact on which parent should claim the child on their tax refund.
Ultimately, you have the opportunity to work with your child’s other parent to come to an agreement that best suits your family’s needs. However, in the event that you and your spouse are unable to work out this point of contention in your divorce settlement, it will go before the judge who will make a determination in your case.
For this reason, it is essential that you take steps to work with your spouse to settle your divorce amicably. The judge presiding over your case, the well-intentioned, does not know you or your family. They will do their best to act in the best interest of your children. You will need to work with your divorce lawyer in North Carolina to prove why you should have the right to claim your child as a dependent on your taxes if your divorce is sent before a judge.
If you and your child’s other parent are unable to work together to determine which parent will claim your children on their taxes, you may need to work with an experienced North Carolina divorce lawyer at Breeden Law Office if you hope to protect your rights.
Contact our office for a confidential consultation today. You can complete our online contact form or give our office a call at (919) 661-4970 to get started.