Summary
The IRS rules on claiming a child as a dependent can complicate tax filing for divorced or separated parents. Generally, the parent who has custody for most of the year can claim the child, not necessarily the one who pays child support. To transfer these rights to the noncustodial parent, a specific IRS form must be filed.
Key Facts
- Over 4 million people pay child support in the U.S. each year.
- IRS rules link the ability to claim a dependent child mainly to custody, not child support payments.
- A child can be claimed if they are under 19, or under 24 if a full-time student, or any age if permanently disabled.
- The Child Tax Credit is up to $2,200 per child, with up to $1,700 refundable.
- Custodial parents can transfer the right to claim a child to the noncustodial parent using IRS Form 8332.
- Without Form 8332, the IRS may deny the dependency claim regardless of custody agreements.
- The credit begins to phase out for high-income earners.
- To claim the Child Tax Credit, children must have a valid Social Security number.
