Blanton Law, P.A.
Free Initial Consultation

Tax implications of a custody agreement

In a contentious divorce that involves children, it's not unusual that the parents focus their attention on the issue of custody. For most, the care of their children comes first. But Florida parents that are going through the divorce process also face serious tax implications depending on how the custody issue is decided.

There are a variety of tax benefits for claiming a child as a dependent. There are exemptions for each child, a child tax credit, a childcare credit, and the ability to file as a head of household just to name a few. While this is a straightforward issue for married parents, divorced parents face complications. The major issue is that these tax benefits cannot be split between parents or claimed by both.

To determine which parent gets the tax benefits, the IRS uses a series of tiebreakers. First, if both parents file separately and both claim the child, the IRS will award the deduction to the parent with whom the child lived for the most time during that year. Assuming the time was split evenly between the two parents, the IRS will award the deduction to the parent with the highest adjusted gross income. Ultimately, the most salient point in all of this is that when it comes to taxation issues IRS requirements will trump a custody order from a state court.

A court-ordered custody agreement doesn't merely affect how a parent cares for their child; it can also affect how that parent files his or her taxes. The tax implications of a divorce are complicated and often not the immediate concern of a parent going through a divorce. An attorney with experience in family law may be able to counsel that parent on how the custody decision could affect their tax bill.

No Comments

Leave a comment
Comment Information

Talk To An Experienced & Compassionate Lawyer Today. Call 941-584-4263.

Email Us For a Response

Get A Free Consultation

Contact the Firm

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Office Locations:

Venice Office
1100-C S. Tamiami Trail
Venice, FL 34285

Toll Free: 888-610-0968
Phone: 941-584-4263
Fax: 941-493-5377
Venice Law Office Map

ComCenter at Lakewood Ranch
9040 Town Center Parkway
Suite 204
Bradenton, FL 34203

Map & Directions