After divorce or legal separation, IRS rules determine which parent can claim many child-related federal income tax breaks. Generally, the parent with whom the child spends the most nights gets the benefits. But the rules allow this “custodial” parent to release to the other, “noncustodial,” parent the right to claim the child for certain tax breaks if specific tests are passed. Even then, some tax benefits, such as head of household filing status and the child and dependent care credit, remain with the custodial parent. Also, the custodial parent may revoke the release of the right to claim the child for the tax breaks. The rules are complex. Contact us for more information and assistance.
