Custody arrangements can take many different forms but in joint custody, who claims the child or children on their taxes? This issue can significantly impact both parents’ finances—for younger children, this sum likely amounts to more than 10,000 dollars over the years. Having a trusted Houston family law firm on your side ensures that credit is divided in a way that best supports the child or children.

What constitutes a custodial parent?

While joint custody agreements often give both parents equal say over decisions that may affect the child or children, the custodial parent generally claims the child tax credit. A custodial parent is a parent who has 183 or more overnights throughout the year. This means that, in the event of a long vacation or unexpected situation, the custodial parent may switch without notice from year to year. When both parents agree on who claims child tax credit ahead of time, this is less likely to be an issue.

How do taxes work with 50/50 custody?

Both parents need to work together for joint custody with equally split time. Many parents will alternate years to divide the tax credits equally. Occasionally, one parent’s high income may disqualify them from child tax credit or dependent care credit. In that case, it makes more sense for the other parent to claim the credit or deduction. When parents cannot agree, many seek a court order so that the parent who contributes the most financially can claim the credit.

Eaton Law Firm

Divorce and custody arrangements are stressful processes. An experienced, compassionate Houston family law attorney at Eaton Law Firm can help you navigate Texas’s local laws while keeping in mind the best interests of you and your children. For a free consultation, contact us on our website or call (281) 789-0064.