Parents living separately may share physical custody of their child on a roughly equal basis. While such arrangements can be challenging, when both parents are committed to making them work, they allow children to build close, meaningful relationships with each parent.
One of the many issues parents with shared custody must decide is who will take the child tax credit for dependents each year when they file their taxes. Talk to a child custody attorney at Dolan Divorce Lawyers about 50/50 child custody and taxes in New Haven. We can explain your options and make sure you know how your shared custody arrangement might impact your taxes.
Connecticut family law imposes obligations on both parents to share the cost of raising their children. When parents live separately, one parent may pay child support to the other to contribute to the expenses of raising the child, assuming there is no deviation based on the parents having substantially similar incomes. Parents can also share the financial benefits of raising children, primarily the ability to claim them as dependents on taxes.
In a traditional arrangement where one parent provides a home for the children most of the time, under IRS guidelines, that parent has a stronger claim to retaining any child dependency credit. However, when both parents provide a home for the children for approximately equal periods, there is an argument to be made for sharing the benefit of claiming the children as dependents.
Parents can negotiate the child dependency tax credit and include it in their custody agreement, or a judge may decide and incorporate it into the divorce decree. A New Haven custody attorney has experience addressing this issue in shared custody arrangements and the various options available for handling it. They can discuss options with a parent and help determine which approach best suits their specific circumstances.
Only one parent can claim a specific child as a dependent in a given tax year. Parents have the freedom to decide which parent claims the children. A New Haven attorney can help a co-parenting couple negotiate an agreement on claiming dependents on taxes to avoid a Connecticut judge making the decision for them.
One of the simplest methods is for parents to alternate years. One parent may claim all the children in odd-numbered years, and the other will claim them in even-numbered years.
Alternatively, parents who have an even number of children might each claim a specific child or children every year. For example, a couple with four children might each claim two of them as dependents each year. If a couple has five children, each might claim two every year, and the parents could alternate claiming the fifth child.
Divorce and custody issues have a huge impact on each partner’s finances, including taxes. Working closely with a trusted tax professional throughout the negotiations is critical.
A seasoned New Haven custody attorney is accustomed to collaborating with other skilled professionals when negotiating shared custody settlements for divorcing couples, ensuring the outcome is fair to both parents and maximizes tax advantages.
Equitably sharing the financial burdens and advantages of raising children can be challenging. Call on Dolan Divorce Lawyers to help you navigate 50/50 child custody and taxes in New Haven. We can guide you through the issues and help you implement a fair and financially advantageous solution, so reach out to get started today.
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