Can both parents claim child on taxes if not married?
In the United States, the tax system is designed to provide financial benefits to families, including those where parents are not married. One of the most common questions among unwed parents is whether both can claim a child on their taxes. The answer to this question is both complex and subject to specific conditions.
Understanding the Rules
According to the Internal Revenue Service (IRS), only one parent can claim a child as a dependent on their tax return. However, if the parents are not married or do not live together, there are exceptions that allow both parents to claim the child. The key factor in determining who can claim the child is the “custodial parent” status.
Custodial Parent
The custodial parent is defined as the parent with whom the child lived for the greater portion of the year. If the child spent an equal amount of time with both parents, the parent who provided the child with the greater amount of financial support may claim the child. It is important to note that the IRS does not require a legal custody agreement to determine custodial status.
Release of Claim
If the custodial parent agrees to release their claim to the non-custodial parent, the non-custodial parent can claim the child as a dependent. The custodial parent must sign a Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent. This form can be attached to the non-custodial parent’s tax return.
Joint Custody
In cases of joint custody, where the child spends equal time with both parents, the IRS provides additional guidance. The custodial parent can choose to release their claim, allowing the non-custodial parent to claim the child. Alternatively, the parents can agree to alternate claiming the child each year, which may require a written agreement.
Impact on Tax Credits
Claiming a child as a dependent can provide various tax benefits, including the Child Tax Credit and the Additional Child Tax Credit. It is important for both parents to understand the financial implications of claiming the child and to communicate effectively to avoid any disputes.
Seeking Professional Advice
Navigating the complexities of tax laws can be challenging, especially for unwed parents. It is advisable to consult with a tax professional or an accountant to ensure that both parents comply with the IRS regulations and maximize their tax benefits.
In conclusion, while both parents can claim a child on their taxes if not married, it is crucial to understand the rules and conditions set by the IRS. Communication between parents and seeking professional advice can help ensure a smooth tax filing process and avoid any legal issues.
