Claiming Both Children as Dependents: Legal and Practical Considerations
Parents who share custody of their children often grapple with the complexities of claiming dependents on their tax returns. This guide will help you understand how to legally claim both children as dependents, especially when the custodial arrangement has changed significantly from your original divorce decree.
Legal and Practical Overview
The decision to claim your children as dependents can have significant financial implications for your tax return. However, your ability to claim dependents is often dictated by legal documents like divorce decrees, as well as subsequent legal agreements. If both you and your ex-husband have claimed dependents for your children despite the change in living arrangements, it is crucial to consult an attorney to modify the original decree.
Consult with a Legal Expert
Modifying a divorce decree to reflect the current situation can be complex. It is highly recommended to consult with a family lawyer who can help you navigate the legal landscape and advocate on your behalf. They can help ensure that any modifications legally bind both parties and prevent any future conflicts.
Steps for Claiming Dependents
Typically, the parent with whom the child resides the majority of the year is considered the custodial parent and can claim the child as a dependent. However, for situations like yours where the arrangement has changed over time, it is necessary to follow specific steps through the tax forms and legal documents.
Use Form 8332: Release/Revocation of Claim to Exemption for Child by Custodial Parent
If your divorce decree states that your ex-husband is entitled to claim the tax deduction, or if he is currently claiming it, you will need to use Form 8332 to reclaim the deduction. This form must be submitted to the IRS to release your ex-husband's claim. It's advisable to use the latest version of the form that includes the Revocation section 3, as previous versions might not be as effective.
If your ex-husband is unwilling to sign the necessary form (or if you do not have the form), your best course of action might be to seek a verbal agreement. However, relying solely on a verbal agreement carries risks, as your ex-husband might forget or ignore your request.
Assert Your Rights Through the IRS
If both you and your ex-husband claim the same child for tax deductions, the IRS will send both of you a letter indicating an error. Should this happen to you, you can file Form 8332 with the necessary signatures to ensure you are recognized as the proper party to claim the dependency. In instances where the noncustodial parent fails to act, the custodial parent may face penalties, as experienced in many similar cases.
Legal Framework in Utah
According to Utah law, the award of tax exemptions for dependent children is determined on a case-by-case basis. The court will consider the relative contributions of each parent to the cost of raising the child, as well as the relative tax benefits to each parent. If the noncustodial parent is not current on child support, the court may award the exemption to the custodial parent.
Legal and Tax Considerations
For a thorough legal and tax analysis, you should consult with a tax accountant and a lawyer. They can provide you with specific advice tailored to your situation and ensure that any agreements or legal actions are properly documented and executed. If your divorce decree does not specify the award of child tax exemptions, you should ask the court to do so under the provisions of Utah Code § 78B-12–217.
Conclusion
Claiming both children as dependents involves navigating legal and tax complexities. It's essential to seek professional legal and tax advice to ensure you follow the correct procedures and protect your financial interests.