Who Claims the Children as Dependents for Tax Purposes?

Tax season is around the corner, and with it the question arises: Who will claim the kids? Only one parent may claim the child(ren) as dependents. Many factors should be considered when determining who will take the tax exemption.

Typically the IRS presumes the parent who has provided more than 50% of the financial support for the child (also presumed to be the custodial parent) is entitled to the exemption. When both parents provide an equal amount of financial support (a true 50/50) this standard doesn't work. In some circumstances a non-custodial parent may claim their child(ren). Parties might agree to and designate the exemption differently from the IRS presumption, using their divorce decree or settlement agreement reached during mediation, despite the division of support.

A few IRS rules apply to a non-custodial parent claiming the exemption: (1) The non-custodial parent must be current on all child support obligations. IRS Rule 203 allows for the reduction of any refund for the payment of past due child support. (2) The non-custodial parent's child support for the year must equal no less than $600. (3) The non-custodial parent should file either Form 8332 (preferred) or a copy of the divorce decree or settlement agreement giving the non-custodial parent the right to claim the child(ren) as deductions. For further details, refer to the IRS website. Aside from adhering to these basic rules, parties might assign the right to claim the child(ren) to whichever parent they agree on, or whichever party is chosen by the court.  

Who will receive the greatest benefit from the deduction? One parent may make significantly more than the other parent, and therefore benefit financially more from taking the deduction for the child(ren). When parents’ income differs greatly, the solution might involve both parents calculating their individual tax obligation and benefit in two ways: one with claiming the exemption for the child(ren) and one without. This option will involve disclosing your tax filings with your former partner/co-parent. Having this information available, both parties can then determine who will receive the greatest benefit by claiming the exemption. 

The parent who would receive the least benefit can then assign the right to claim the deduction to the other party by signing IRS Form 8332. To reimburse the relinquishing party for the benefit they are forgoing, the claiming parent agrees to pay out the amount the relinquishing parent would have received in benefit if claiming the child(ren). For example, if dad’s tax liability would be reduced by $3,000 if he claims the kids and mom’s tax liability would be reduced by $5,000 if she claims the kids, then mom would claim the deduction and pay dad $3,000. Dad is not out anything for allowing mom to take the deduction, and mom pays less in taxes by claiming the exemption. This is called “buying out”. Buying out can result in a better tax outcome for both parties.

Equal Division of the Kids

When sharing an even number of children, parties might elect to divide the exemptions. For example, if Joe and Melanie share two children (Zoey and Jane), Joe will claim Jane and Melanie will claim Zoey. This division works well, as long as both children are under 18 and parents make similar incomes. This arrangement will need to be modified when one child is no longer an eligible dependent.

Alternating the Exemption

Parents may wish to alternate the right to claim the child(ren), giving mom the even years and dad the odd years, or vice versa. This is an equitable option when both parents make similar incomes. Variations on this might also work. If mom has gone back to school and has less income now, but she anticipates more income in the future, she may assign the benefit to dad for the next five years. He then assigns the benefit to her for the five years following, and then they alternate yearly after that.

Like many things in family life, there is not a one-size-fits-all solution. The most equitable solution is one agreed to by you and your co-parent that you both feel good about and are committed to. Take the time to sit down and agree on how you will share this exemption, and save some stress come tax time.

Holiday Parent-time

The holiday season means spending time with loved ones. The emotions attached to family traditions can make reaching a peaceful agreement between separated parents on these special occasions difficult. Here are some options to consider when determining how to share your children during the holidays.

State the Minimum Standard

When parents are unable to reach an agreement on parent time, the court will order the Utah standard parent time schedule. This standard alternates the parent granted the holiday each year. For example, in years ending in an odd number (such as 2011) the noncustodial parent is granted parent time for the first half of the child’s Christmas vacation from school up through 1pm on Christmas day. This means the noncustodial parent will have the child for Christmas eve and Christmas morning until 1pm every other year. To read Utah’s full standard parent time schedule CLICK HERE.

A small variation on the standard schedule

For some families the standard holiday arrangement discussed above works. For other families an alternative that gives both parents time on Christmas eve as well as Christmas day may be preferred. Perhaps the child(ren) spend Christmas eve until 9pm with Dad and spend Christmas morning with Mom until 3pm, each year the family can alternate this if they wish giving Dad Christmas morning and Mom Christmas eve until 9pm.

A More Unique Alternative

For some parents who get along well, dad may come over to mom’s house and spend time with the child(ren) on Christmas eve, and leave once the child(ren) have gone to bed. This could also be applied to Christmas morning, if both parents agree. This should only be a consideration when both parents get along well with one another.  

The above are options to get you thinking about what might work for your family. Many variations exist, and only you and the other parent can truly determine what will work best for you. Take the time to reach an agreement that works for your family.

Considerations When Making a Holiday Parent-Time Schedule

The advantage of creating your own parent-time plan for the holidays is the ability to take into account the many important traditions of both parents and their families. It is important for grandparents and child(ren) to see one another during the holidays, and often family parties or dinners take place when, under the standard schedule, the child(ren) would be with the other parent. When creating a parent-time schedule, parties can allow for dad to have the child(ren) on the evening of grandma’s family dinner or to be returned to mom’s house on Christmas day in time to attend her family party.

No matter which option or variation you and the co-parent select, the holidays should be a happy time for your child(ren). As with all parenting issues, remember no matter the emotion your separation from your ex-spouse or your children may conjure up, you need to put the feelings of your child(ren) first.  By focusing on your child(ren), you can create happy memories and a happy holiday for all of you.

Using Technology to Close the Long Distance Gap

In today’s world, jobs often take us far from our homes and families. When living long distances from your children, either part or all of the year, technology can help you bridge the gap.

While it is always nice to spend physical time with your children, airfare and other travel expenses can add up quickly. For school-age children, taking large blocks of time out of school to travel between parents can be detrimental, leaving school-aged children with only summer and holiday visits to the long-distance parent. Children whose parents reside near each other often benefit from mid-week visits, in addition to weekends with the other parent. Living long distances from your child does not mean you cannot have frequent or even daily contact.

Research has shown that parent-child relationships are built on steady, reliable contact. The amount of time and the means of the contact are less significant than its regularity. What this means for you as the long-distance parent, is that the distance that separates you from your child does not prevent you from having a close relationship with your child.

Use daily emails to your child to ask about school or friends, and to let them know you are thinking about them and care about their daily happenings. Emails transcend time zone differences and allow for two people on two opposing schedules to communicate on their own time. With phone data plans, you can even email or instant message from your cell phone.

Phone calls always give the added comfort of hearing the voice of a loved one, especially for children who are too young for email. Focus the conversation around your child and what is happening in his world. The goal is to remind your child you love and care about him and what he is doing. If your child is old enough for a cell phone with or without a data plan, you can learn to text message, keeping contact between phone calls.  A brief “I love you” or “Good luck on your test”  will send a clear message you are thinking about your child and are aware of what is happening in his day, no matter how far apart you may be.

Many parent-time services and military families are employing the use of Skype to give parents and children face-to-face interaction. Skype allows you to use webcams and your computer’s microphone to video chat with your child. Rather than being surprised by how much your child has changed when they arrive at the airport for his summer parent-time, you can set up weekly Skype calls and watch him grow. If your child does not have access to Skype technology at home, you might consider using a visitation or parent-time service that offers Skype visits in your child’s area.

Technology such as email, Skype and cell phones can lessen the pain of living long distances from your child. While it is impossible to reach through your webcam to hug your child, you can certainly remain a regular part of his life and build a close relationship no matter how many miles physically separate you.    

Unique Challenges in Infant Parenting Plans

The heightened care infants require presents unique challenges when creating a parenting plan for an infant. You must consider several factors about how the infant is cared for, in addition to the location where the infant is to be cared for and the infant’s caregiver designated in the plan. Circumstances such as breastfeeding the infant can present unique challenges, if the child is to be separated from the mother.

When the mother is the primary source of the infant’s nourishment, the child cannot be apart from the mother for more than a couple of hours. While breastfeeding does not continue indefinitely, during its duration both parents need to acknowledge the frequency of the infant’s eating schedule. If the infant is willing or accustomed to accepting breast milk or formula in a bottle, the father can feed the child outside of the mother’s presence.

Infants eat on a regular schedule, whether regimented by parents or caregivers, or if they feed on demand. Both parents, as well as any other caregivers, should follow the same feeding schedule and agree on if the child is to be fed at set times or on demand. 

When determining a schedule for an infant, nap times are also frequent in infancy and must be accounted for. If pick up or drop-off times interfere with the infant’s sleep, the child can become cranky and harder to manage. As a result, sleep schedules should be agreed upon by all invovled parties. When both parents agree and an infant is not dependent on breastfeeding, overnight visits might be considered. Parents must maintain similar bedtime routines at both homes, since infants are comforted by predictability. A well thought-out, mutually respected parenting plan can ease any anxiety an infant can feel about the co-parenting, dual-home arrangement.

Often, parents fear that by sharing custody, or by agreeing to parent time with a non-custodial parent, they will miss out on the important milestones of the child’s development. Parenting plans exist for the needs of the child, and might include provisions to help both parents communicate the accomplishments of the child when in the presence of the other parent. With modern technology such as smart phones, you may consider options such as recording a quick video of your child taking her first steps and instant messaging it to the other parent. In highly volatile situations, even a mutually agreed-upon third party can relay the accomplishments of the child at pick-up time.

You can avoid many conflicts by keeping the other parent informed of the needs and accomplishments of the infant, and by striving to function first as a parent meeting your infant’s needs. Keep in mind that the bond between parent and child begins during infancy. Research has not been able to quantify an amount of time needed for children to bond to a parent, but regular contact has proven significant. It is vital that both parents prepare early for their co-parenting journey, allowing for their infant to bond and build a relationship with both parents. 

Disclaimer

Disclaimer: All information provided is for informative purposes only. This blog in no way constitutes legal advice. Parties are encouraged to seek the advice of qualified legal counsel before proceeding with mediation or commencing any legal action. For referral to a qualified attorney, you may contact the Utah State Bar Association Lawyer Referral program at (801) 531-9077 or your local Bar office.

About Us

Rebecca H. Symes is a domestic and civil mediator in Salt Lake City, Utah with a practice that focuses on domestic, community and housing mediation. She has five years experience as a family law paralegal and holds a B.S. in Sociology and a B.S. in Human Development and Family Studies, both from the University of Utah. A list of Rebecca's mediation credentials include formal training at Utah Dispute Resolution, extensive work with the SLC Court mediation program as well experience working with Salt Lake CAP’s Landlord/Tenant mediation program. Rebecca especially enjoys working with families and helping parents find healthy resolutions in custody matters. Currently, Rebecca is working on her Master’s degree.

Description of Practice

Mediation should meet the needs of all parties through mutually agreeable scheduling and meeting locale. Meeting locations are available across the Wasatch Front. Travel outside the Wasatch front for mediations is available, for an additional fee. Often, courthouses outside the Wasatch Front provide appropriate meeting locations for mediation. The length of mediations vary depending on the type of case or conflict to be resolved. If you have questions regarding the length of mediation, please direct them to Ms. Symes in advance of the mediation.

When appropriate, mediations might not require parties to be in the same room (called shuttle mediation) or can even take place over the phone. For questions of concerns about shuttle mediations or phone mediations please speak with Ms. Symes directly.  

Mediation Philosophy

Mediation offers a mutually successful resolution for parties in conflict. When parties aid in constructing their own resolution, agreements are honored and parties are satisfied. Mediators exist to aid parties in finding mutually acceptable solutions to conflict.

Fees

$65 per hour. All fees are divided equally between the parties. One hour minimum is to be paid at the time the appointment is set. Additional time is due at the conclusion of each session. Travel outside the Wasatch front will be billed at a rate of ½ hourly rate for travel time plus $0.35/mile.

To schedule an appointment, please call (801) 899-6338
Messages will be returned within 1-2 business days. Ms. Symes does accommodate evening and weekend appointments.