Married Filing Separately: Can Both Parents Claim a Child?
Navigate the complexities of claiming a child on separate tax returns. Discover who qualifies to claim tax benefits and prevent disputes.
The Internal Revenue Service (IRS) establishes specific criteria for claiming a child as a dependent, impacting various tax benefits. These rules apply across different filing statuses, including when parents file their tax returns separately.
Defining a Qualifying Child
A child must meet several criteria to be considered a “qualifying child” for tax purposes. These include relationship, age, residency, support, and joint return tests. The child must be your son, daughter, stepchild, foster child, sibling, stepsibling, or a descendant of any of them, such as a grandchild, niece, or nephew.
Regarding age, the child must be under 19 at the end of the tax year, or under 24 if a full-time student for at least five months of the year. An exception exists for individuals who are permanently and totally disabled, who can be any age. The residency test requires the child to have lived with the taxpayer for more than half the tax year, though exceptions apply for temporary absences or children of divorced or separated parents. The child must not have provided more than half of their own support for the year. Finally, the child cannot file a joint return for the year, unless it is filed solely to claim a refund of withheld income tax or estimated tax paid.
Rules for Claiming a Child When Parents File Separately
When parents file separately, only one parent can claim a child as a qualifying child for tax benefits. This means tax benefits cannot be split or divided between parents. The IRS employs “tie-breaker rules” to determine which parent can claim the child if both meet the qualifying child criteria.
The custodial parent generally has the right to claim the child. For tax purposes, the custodial parent is the parent with whom the child lived for the greater number of nights during the tax year. If the child lived with each parent for an equal number of nights, the parent with the higher adjusted gross income (AGI) is considered the custodial parent for claiming purposes.
A noncustodial parent may be able to claim the child if the custodial parent agrees to release their claim. This release is typically formalized by the custodial parent signing IRS Form 8332, “Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent.” The noncustodial parent must attach a copy of this signed Form 8332 to their tax return. While Form 8332 allows the noncustodial parent to claim the child for certain benefits like the Child Tax Credit, it does not transfer the right to claim the Earned Income Tax Credit, the Child and Dependent Care Credit, or the Head of Household filing status. A signed Form 8332 or a substantially similar statement is required; pages from a divorce decree or separation agreement alone are generally not sufficient.
Tax Benefits Associated with Claiming a Child
Claiming a qualifying child can unlock several valuable tax credits and deductions, significantly reducing a taxpayer’s liability. One of the most common benefits is the Child Tax Credit (CTC), which can be worth up to $2,000 per qualifying child for the 2024 tax year. A portion of this credit, up to $1,700 per child for 2024, can be refundable as the Additional Child Tax Credit (ACTC), meaning taxpayers might receive a refund even if they owe no tax. Income phase-out rules apply, reducing the credit for higher earners; for 2024, the credit begins to phase out at $200,000 for single filers and $400,000 for those married filing jointly.
The Earned Income Tax Credit (EITC) is another substantial benefit for low- and moderate-income workers, with the amount varying based on income, filing status, and the number of qualifying children. For 2024, the maximum EITC can range from $632 with no children to $7,830 for families with three or more children, with income limits generally below $66,819 for married filing jointly.
The Child and Dependent Care Credit helps offset expenses paid for the care of a qualifying child under age 13, or a dependent who cannot care for themselves, to enable the taxpayer to work or look for work. For 2024, taxpayers can claim a credit ranging from 20% to 35% of up to $3,000 in expenses for one qualifying person, or $6,000 for two or more.
What Happens When Both Parents Claim the Same Child
When both parents erroneously claim the same child on their tax returns, the IRS identifies this discrepancy through matching Social Security Numbers. The first e-filed return claiming the child’s Social Security Number is generally accepted, and any subsequent e-filed returns claiming the same child will typically be rejected. If a second return is paper-filed, the IRS may accept it initially but will then notify both taxpayers about the conflict.
The IRS often sends notices such as CP87A to inform taxpayers that another individual has claimed the same dependent. This notice requests verification of the claim and does not immediately indicate a penalty. However, if the issue is not resolved, the IRS will apply its tie-breaker rules to determine which parent is entitled to claim the child. The parent who is ultimately not entitled to the claim will need to amend their tax return, which may result in additional tax due, along with potential penalties and interest. Failure to address such discrepancies can lead to further IRS action, including audits.