Who Claims the Child on Taxes After Divorce?

In most cases, the custodial parent claims the child. However, if both parents qualify, the IRS tie-breaker rules apply. The custodial parent can also transfer the claim to the noncustodial parent by signing Form 8332.

When parents divorce, taxes get tricky. One of the biggest questions is: who claims the child after divorce? For a full guide to tax rules after divorce, see our Divorce Pillar Page.

Why Dependency Matters: Child Tax Benefits After Divorce

The answer matters because dependency claims unlock valuable tax breaks and affect your filing status. In short, who claims the child determines who gets the most significant financial benefits at tax time.

But here’s the catch: only one parent can claim a child per tax year. Federal tax law doesn’t allow parents to split the same child’s benefits, even if custody is shared equally. That means parents need to understand the IRS rules to avoid double claims, rejected returns, and tax disputes.

IRS Custody and Taxes Rules Explained

The IRS uses strict tax custody rules to decide which parent gets the dependency claim. Here are the IRS rules you need to know:

• Custodial Parent: The parent the child lived with for more than half the year.
• 50/50 Custody: If time is equal, IRS tie-breaker rules apply.
• Higher Income Prevails: If both qualify, the parent with the higher AGI claims the child.
• One Child = One Claim: Only one parent per child per tax year.

👉 Pro tip: A parenting schedule may not line up with IRS residency rules. Count the nights the child lived with you, not just custody percentages from court orders.

H2: How Form 8332 Works

If the custodial parent agrees, they can release their right to claim a child by signing Form 8332. This form is critical for divorced parents navigating dependency claims.

Key rules for Form 8332:

• Allows the noncustodial parent to claim certain credits.
• Applies only to Child Tax Credit and related benefits.
• Does not transfer EITC, Dependent Care Credit, or Head of Household status.
• Can be revoked in later years with a new form.

⚠️ Common pitfall: If the noncustodial parent files without attaching Form 8332, the IRS will usually deny the claim.

IRS Tests for Claiming a Child After Divorce

To claim your child, the IRS requires them to pass the qualifying child tests:

• Relationship: Must be your child, stepchild, foster child, or qualifying relative.
• Age: Under 19, under 24 if a student, or permanently disabled.
• Residency: Lived with you for more than half the year.
• Support: The child cannot provide more than half of their own support.

If you meet these rules, claiming the child can reduce your taxable income and increase your refund potential. The benefits include:

• Child Tax Credit: Up to $2,200 per qualifying child. (Source: Big Beautiful Bill)
• Additional Child Tax Credit: Up to $1,700 in 2025, refundable portion if the CTC exceeds your liability.
• Earned Income Credit (EIC): A refundable credit available only to custodial parents.
• Dependent Care Credit: Helps cover childcare costs while working.

If these tests aren’t met, you cannot legally claim your child—regardless of custody agreements.

Filing Taxes After Divorce with Kids

After a divorce, parents must file separately. Your filing status depends on custody:

• Custodial Parent: May be eligible for Head of Household filing status if supporting the child and maintaining the home. HOH usually means lower taxable income and higher standard deductions.
• Noncustodial Parent: Typically files as Single, unless remarried.
• Child Support Payments: These payments are tax-neutral—they are not deductible for the payer or taxable for the receiver. However, custody still determines who gets dependency claims.

Here’s a quick comparison of custodial vs. noncustodial parent tax benefits after divorce, so you can see which credits and filing statuses apply.

👉 Related Read: Filing Mid-Year Divorce covers how custody mid-year affects dependency claims.

Alternating Years: Sharing a Qualifying Child After Divorce

Yes—some parents agree to alternate years when claiming a child for tax purposes. Here’s how it works:

• Form 8332 Required: The custodial parent must sign the release each year the noncustodial parent is entitled to claim.
• Benefits: Alternating years can help balance financial benefits between parents.
• Example: In joint custody, one parent claims in even years, the other in odd years.
• Risks: If the custodial parent forgets to sign Form 8332, the noncustodial parent may lose out.

⚠️ Be careful: Alternating years can lead to disputes or rejected returns without clear agreements.

What If Parents Disagree? (Disputes & IRS Tie-Breaker Rules)

If parents disagree, the IRS applies the following tie-breaker rules:

1. The parent the child lived with for the majority of the year (custodial parent) wins.
2. If time is equal, the parent with the higher Adjusted Gross Income claims the child.
3. Court orders don’t override IRS regulations—federal tax law rules apply.

A family law attorney may help resolve tax issues related to custody if disputes persist. But in practice, the IRS has the final say.

Mistakes to Avoid When Claiming a Child

Divorced parents often make errors that cost them refunds. Here are the most common mistakes:

• Double Claiming the Same Child: Both parents file for the child. The IRS will reject one return.
• Forgetting Form 8332: Noncustodial parents lose out if they don’t attach the form.
• Assuming Child Support = Tax Claim: Paying child support doesn’t give you the right to claim.
• Failing Residency Test: Even one extra night with the other parent can flip custody status.

💡 Tip: Double-check IRS Pub 504 before filing to avoid these costly mistakes.

When to Consult a Tax Professional

Claiming children after divorce isn’t always straightforward. A tax professional can:

• Review your custody arrangement and determine eligibility.
• Help file Form 8332 correctly.
• Advice on how to maximize your refund while avoiding IRS disputes.
• Explain how dependency claims tie into alimony and child support rules.

👉 Related: Alimony & Child Support explores how support affects tax claims.

Final Thoughts

In summary, the custodial parent usually claims the child unless they release the claim with Form 8332. When disputes arise, the IRS tie-breaker rules decide. Plan ahead, keep records, and avoid common mistakes to maximize your tax benefits.

👉 Download our Dependency Claim Flowchart to quickly check if you can claim your child this year.