The Custodial and Noncustodial Parent
The custodial parent is the one the child lives with for more than six months, while the noncustodial parent is the other parent. However, custody of the child can be switched if the custodial parent releases the child to the noncustodial parent through a separation decree or a written and signed declaration.
Generally, a parent can have custody when he or she takes care of the needs of the child, but we’ll be looking at the IRS rules concerning this, and it is best to understand the meaning of the words “dependent” and “IRS”. The term “dependent” means a qualifying child or relative, meaning, a child or relative that is fit for claims while the term “IRS” stands for the International Revenue Service, which is the body responsible for tax laws in the United States. Let’s look at a brief overview of the IRS rules concerning claiming custody.
An Overview Of The IRS Rules For Claiming A Dependent.
The IRS set up qualifying tests for relatives(individuals seeking claim) and also tests for the eligibility of a child. We’ll begin with these few tests for relatives.
Qualifying Tests For Relatives
· A relative cannot claim a dependent if he or she is been claimed as a dependent by another person.
· A relative can only claim a dependent if the dependent is eligible for the claim.
· The relative seeking to claim a dependent must be able to provide more than half of the dependent’s total support for the entire year.
Having gone through the tests required for claiming a dependent, let’s look at the qualifying tests for a child.
Qualifying Tests For A Child
These tests center on age, residency, relationship with qualifying relatives, and joint return.
· Age: The child must be under age 19 at the end of the year and younger than the qualifying relative, or a full-time student under the age of 24 at the end of the year, or can be any age if disabled physically or otherwise.
· Residency: The child must have lived with the qualifying relative for more than six months, with full provision of the needs of the child.
· Relationship with Qualifying Relative: The child cannot be the child of someone else, he or she must be related to the qualifying relative either directly, by adoption, or by fostering.
· Joint Return: The child must not obtain a joint return unless the filing is to claim a withheld income or a case of overestimation of tax.
Note: A joint return is the completion of all documentation regarding an individual’s earnings and the amount of taxes payable to the government or potentially payable to the individual involved.
With a brief rundown of the IRS rules about the claim of a dependent, it is important to note that there are a few exceptions to these rules. These exceptions surround children with peculiar cases. Some of these exceptions are explained below.
· Exceptions exist for temporary absence. This occurs when the claimed person is absent from a household that they share with others at a particular time. The absence may be a result of a work schedule, going on a vacation, or being hospitalized.
· Exceptions exist for children of already divorced or separated parents, which means that children under this category were born when their parents were already separated. It is important to note that this exception can only take effect if both parents lived separately for the last 6months of that year, regardless of whether they were still married or not.
Summary
With so much being said, we can see that deciding who claims the kids after a divorce could be a lifelong battle, however, with the IRS set rules, taking this decision is made easier and simpler.
· What Happens If Both Divorced Parents Seek To Claim A Dependent?
The IRS rules would take effect in this situation. This means that the parent who does not qualify will not be given the child, so it’s best to know these rules and abide by them.
· Can A Noncustodial Parent Claim A Dependent?
Yes, but it can only be done through a separation decree or declaration.
· Can A Non-Parent Take Custody Of A Child?
Yes, but the person has to meet the IRS rules for relatives.
Note: For more details on the IRS rules, please visit https://www.irs.gov/publications/p504
