Can both parents file the same child on taxes? Can both parents claim child on taxes? What happens if both parents claim child on taxes? These questions arise in virtually every California divorce with children, and the answers have significant financial consequences.
Can Both Parents File the Same Child on Taxes?
Can both parents file the same child on taxes? No — only one parent can claim a child as a dependent in any given tax year. Can both parents claim child on taxes for different credits? Generally no — the dependency exemption is allocated to one parent per year. What happens if both parents claim a child on taxes? If both parents claim the same child on their tax returns in the same year, the IRS will flag both returns. The IRS tiebreaker rules then apply: the parent with whom the child lived for more nights during the year wins the claim. The other parent's return will be rejected or corrected, and that parent may owe back taxes, interest, and penalties.
What Happens If Both Parents Claim Child on Taxes — The IRS Process
What happens if both parents claim child on taxes when the IRS catches the duplicate claim? The second return filed is typically rejected if filed electronically. If both filed paper returns, the IRS processes both and sends letters to both parents requesting documentation. The parent who cannot establish the child lived with them primarily will owe the refund back. In some cases both parents receive audit notices. The IRS tiebreaker — based on nights lived with each parent — is the deciding factor when the parents cannot agree.
How Divorce Orders Allocate the Child Tax Exemption
California divorce orders and marital settlement agreements should specify which parent claims the child as a dependent each year. Courts often alternate the exemption between parents in even and odd years, or allocate children between parents in multi-child cases. When the non-custodial parent is to claim the child, the custodial parent must sign IRS Form 8332 releasing the exemption. Furubotten Law, APC advises on tax dependency allocation in divorce settlements throughout Orange County and Riverside County. Call (714) 795-3862 for a complimentary case evaluation.