An estimated 10 million Americans pay child support annually. For many parents, a significant question arises – can I still claim my child as a dependent on taxes despite paying child support?
The answer is often yes, but the rules can be complicated. Paying child support does not automatically prohibit claiming your child as a dependent. However, you generally cannot claim a child if you are the non-custodial parent and the custodial parent releases the dependency exemption to you.
The key factors are:
- Which parent has custody
- The child support agreement
- Who provides over 50% of the child’s monetary support.
This article will explain IRS requirements for claiming child dependents when paying child support.
Claiming Child Dependents Overview
First, let’s define some key terms:
- Custodial parent – The parent the child lived with for the greater number of nights in the year. The custodial parent generally claims the child as a dependent.
- Non-custodial parent – The parent the child did not live with for the greater number of nights in the year. The non-custodial parent may still be able to claim the child dependent.
- Claiming a dependent – Qualifying to list a child as a dependent on your tax return in order to receive tax benefits like deductions and credits.
The general IRS requirement to claim a child as a dependent is having lived with the child for more than six months (at least 183 nights) in the tax year. However, special rules apply for divorced or separated parents.
Impact of Paying Child Support
Simply paying child support does not disqualify you from claiming your child as a dependent. In most cases, the custodial parent claims the child as a dependent. But the non-custodial parent can also qualify if they provided over half the child’s monetary support for the year.
The non-custodial parent cannot claim the child unless the custodial parent signs IRS Form 8332 releasing the dependency exemption to them. The non-custodial parent must attach this form to their return.
Qualifying to Claim Child Dependent
As the non-custodial parent, you must have provided over 50% of the child’s total monetary support to claim them as a dependent. Support expenses include:
- Child support payments
- Medical and dental costs
- Child care
- School tuition
- Food, clothing, and entertainment
You may still be able to claim the child even if you provided less than 50% support if:
- You paid all medical/dental costs
- You paid all school tuition
- Support from other sources is low
Keep meticulous records of qualifying child expenses to prove you provided over half the total support.
Using IRS Form 8332
If the custodial parent will not release the exemption by signing Form 8332, you can still claim the child if you meet the support test rules. To do so, you must attach a Form 8332 signed by the custodial parent to your tax return. The form releases their right to claim the child that year. Our attorneys can help obtain a properly executed Form 8332 if needed to claim your child dependent.
Conclusion
Paying child support does not automatically prohibit claiming your child’s dependency exemption. But you generally must show you provided over half of total monetary support for the child.
Consult a trained attorney to receive personalized guidance on qualifying to claim your child based on your unique situation. We can help maximize tax savings so more of your money goes toward supporting your children.
FAQs
1. What expenses count as child support?
Qualifying child support expenses include child care, medical/dental costs, school tuition, food, clothing, entertainment, and more. Keep detailed records to prove providing over half the total monetary support.
2. When can the non-custodial parent claim the child?
The non-custodial parent can claim the child if they provided over 50% of monetary support, or if the custodial parent signs Form 8332 releasing their exemption claim, and the non-custodial parent attaches Form 8332 to their tax return.
3. What should I do if the custodial parent won’t release the exemption?
If you provided over 50% of the child’s support, you can still claim the exemption without Form 8332. Or consult a lawyer to legally obtain Form 8332 if needed to claim your child.
4. Do child support payments automatically disqualify claiming my child?
No, paying child support does not prohibit claiming your child as a dependent. The key factors are which parent has custody and who provides over 50% of total monetary support.
5. What if each parent wants to claim the child?
If both parents try claiming the child illegally, the IRS will typically award the exemption to the custodial parent. Parents should seek legal guidance on the proper way to allocate the child dependency exemption.
6. Can child support agreements specify who claims the child?
Yes, child support orders sometimes specify which parent can claim the child. But the claiming parent must still meet IRS support requirements. Having a claim provision does not override IRS rules.
Don’t lose out on tax savings as a child support payer. Contact our office today for a consultation at (813) 902-3576 to ensure you maximize child dependent benefits.
