Who Gets to Claim the Child on Taxes after Divorce?

The two primary concerns when it comes to divorce? The break down into those related to your children and those related to your finances, and sometimes, these coincide. Who will be claiming the children on your taxes moving forward is a prime example of this. If you are facing a divorce, discuss your questions and concerns with an experienced Chicago divorce attorney today. 

The Benefits of Claiming Your Children on Your Taxes

Few would deny that raising children is as costly as it is rewarding. Even the IRS understands this, and as a result, it offers some significant tax advantages to those parents who are able to claim their children on their taxes. In other words, the parent who is assigned the right to claim the children on their taxes stands to receive a more sizable refund or have less tax liability due come tax season. 

Tax Credits

The primary tax credits related to claiming children as dependents include the following:

• The Child Tax Credit
• The Additional Tax Credit, which refers to an additional credit – not to declaring an additional child as a dependent 
• The Earned Income Credit, which can apply to those who claim children and those who do not

Additional benefits can include the following:

• Claiming Child and Dependent Care Expenses
• Filing as Head of Household

In Order to Claim the Child Tax Credit

In order to claim your children on your federal taxes, they must qualify as dependents, which most minor children and some college-aged children do. In order to qualify for the full Child Tax Credit, the following requirements apply:

• The child must be under the age of 17 at the year’s end.
• You must claim the child as your dependent on your tax return.
• The child cannot have contributed to more than 50 percent of their own support throughout the year. 
• Each child must have a Social Security number.

If the child in question turns 17 on the last day of the tax year, they’re not eligible for the full Child Tax Credit, but the Credit for Other Dependents applies. 

In Order to Claim the Child and Dependent Care Credit

In order to qualify for the tax credit that applies to your childcare costs, the following must apply:

• The child is your dependent.
• You reach the IRS’s threshold for earned income credit.
• You incurred childcare expenses while you were either working or looking for work. 
• The person you paid to care for your child is not a dependent of yours – such as an older child
• You are filing as either single or head of household
• You include the childcare provider’s tax identification number on your return.

Look to an Experienced Chicago Divorce Attorney for the Guidance You Need

The skilled Chicago divorce attorneys at WARD FAMILY LAW appreciate the critical role that claiming your children as your dependents can have on your financial future, and we’re here to help. Your singular focus on your children should be reflected in your post-divorce taxes, so please don’t delay contacting us for more information today.