Which Parent Gets to Claim Children as Dependents After Divorce in Tennessee?

Navigating the financial complexities of divorce is often as challenging as the emotional process itself. One of the most important and frequently contested issues is determining which parent can claim the children as dependents for tax purposes. For divorcing parents in Tennessee, understanding the state and federal guidelines governing this decision is crucial to protect your rights. Continue reading for information on the default IRS rules, Tennessee court practices, and more. Work with a knowledgeable Shelby County, Tennessee divorce lawyer for skilled legal assistance today.

What Does it Mean to Claim a Child as a Dependent?

A dependent, in the context of tax law, is an individual like a child or relative who relies on the taxpayer for financial support. Claiming a person as a dependent typically allows the taxpayer to benefit from certain tax credits and deductions, significantly reducing their taxable income and overall tax liability.

To claim a child as a dependent following a divorce means that one parent is legally entitled to use the child’s status on their federal and state income tax returns. This may grant the parent access to the Child Tax Credit (CTC), head of household filing status, and other deductions or credits.

Which Parent Gets to Claim Children as Dependents After Divorce in TN?

In Tennessee, as governed by IRS rules, the custodial parent is generally entitled to claim the child as a dependent. Being a custodial parent means having physical custody of the child for the majority of the time. This determination is not decided based on the legal custody label used in the divorce decree. Instead, it is a calculation of where the child spent the most nights.

However, the non-custodial parent can claim the dependency exemption if the custodial parent signs IRS Form 8332 (Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent) or an equivalent statement within the divorce agreement. Tennessee courts often include stipulations regarding the dependency exemption in the final decree of divorce, sometimes alternating the claim between parents yearly or allocating it based on factors like income or child support. These court orders, when properly documented with Form 8332, can override the default IRS rule.

Can Parents Alternate Claiming Children Each Year?

Yes, as established, parents can alternate claiming children as dependents each year, and this is a common practice in many Tennessee divorce decrees. While the IRS default rule favors the custodial parent, the parents can agree (and the court can order) that the non-custodial parent claims the child in certain years.

The alternating schedule is often designed to distribute the tax benefits equitably, such as one parent claiming the child in odd years and the other in even years, or basing the claim on who pays a greater percentage of the child’s medical expenses, etc. This is often used in cases where parents share parenting time relatively evenly.

For more information and skilled advice, contact an experienced attorney today.