Complicated legal matters are an unfortunate part of a divorce. This is a tough time especially since everything needs to be covered from custody, visitation and joint property. However, one of the areas which aren’t covered often is the tax benefits of the children. Now, a lot of people don’t think about which parent gets tax benefits and it isn’t hard to see why. It’s an emotional time and most people think about making the separation easier so who gets the tax benefits of children after a divorce?
Children Need To Live With Parents for At Least Six Months of the Year
One of the biggest rules for being able to claim tax benefits for the children has to be the period in which the children reside with a parent. The child has to live with the parent equivalent to six months or longer in the entire year. This is a vital and one of the most important factors of tax benefits because if the child or children don’t live with one parent for more than six months then they will not be entitled to anything. A Tax attorney Utah will help to explain this point further.
If both parents have joint custody and live with each parent fifty percent of the time, one or both may be eligible for the tax benefit. This can vary from state to state of course but it’s important to consult a Utah tax attorney. They will be able to explain things further and it may be that just one is able to get this tax break.
Children Living At Home and Studying
If a child is still living at home and is under the age of nineteen, the custodial parent can still claim tax benefits. Your tax attorney will be able to shine more light on this of course; however, in most cases, the child can be eligible for tax benefits as long as they are nineteen or younger. However, if a child is studying and is under twenty four, they may also be eligible for a tax exemption.
Non-Custodial Parents Can Be Granted Tax Exemptions
There is also the chance for non custodial parents to be given the tax exemption. One reason is due to the fact that the custodial permits the non-custodial to receive the tax exemption. This does happen and it is possible but the right forms need to be signed in order for the tax exemption to be handed over. The form which is required to be signed has to be signed by both parties and handed over to the IRS. A good tax attorney will walk both parties through procedure.
Deciding Who Gets the Child Tax Benefits Can Be Simple
In most cases, the custodial parent will be the one who gets the tax benefits and will be straightforward. However, in other cases, it may be a little more complicated. If one parent wants, they can assign the tax benefit over to the other parent; and this can all be sorted out during the divorce as well. However, a good tax attorney will help explain what you need to know about tax benefits.Bottom of Form