Negotiating Who Takes Children As A Deduction In San Jose Child Custody Cases

As tax season approaches, our office tends to get flooded with questions. People want to know how divorce, child custody, and other sensitive family court matters impact their tax rights and how they complete federal returns.

One of the most common concerns is who claims children as a deduction. Our San Jose child custody lawyer explains how state and federal laws apply and the steps you need to take before listing your child as a dependent on your 2024 return.

Who Gets To Claim Children As Dependents Under California Law

Child custody proceedings in Santa Clara County deal with potentially complex issues that impact parents and their children. One of the things you will need to negotiate in these proceedings concerns who gets to list your child as a dependent on their 2024 tax return. This gives you the right to claim the following:

• Head of Household Filing Status
• Dependent Exemption Deduction
• Earned Income Credit
• The Child Tax Credit
• Child and Dependent Care Credit
• Education Credit or Education Expense Deductions

Under Internal Revenue Service (IRS) guidelines, the parent with primary custody of the child is legally entitled to claim them as a tax exemption. However, the California Code generally encourages joint custody arrangements and child time-sharing, in which the child’s time gets divided between each parent’s home.

In this situation, there are several options. The parent with greater income and tax liability or with whom the child resides for the greater part of the year is generally entitled to claim the deduction. However, they may choose to let the other parent claim the deduction or alternate who takes it as part of a child custody settlement.

Steps to Take Before Claiming Your Child as a Dependent

There are several options for determining who can claim your child as a tax credit for the 2025 tax season. However, remember that regardless of any arrangements you make, custody arrangements are a primary factor in determining who gets to claim your child.

Federal tax law takes precedence over the California Family Code in this situation. Before attempting to claim your child as a dependent for 2025 tax purposes, ensure you do the following:

• Review custody agreements and confirm any stipulations regarding tax claims;
• Complete IRS Form 8332 if you are the non-custodial parent;
• Maintain accurate records, documenting any agreements related to the child and potential tax claims;
• Consult a tax professional when completing your return to ensure compliance with federal and state tax laws.

Request Consultation Today With Our Experienced San Jose Child Custody Lawyer

Getting to claim your child as a deduction can have a major impact on your 2025 taxes. However, before taking any actions that could put you in violation of federal tax laws, contact Argyris Mah, LLP.

We provide the trusted legal guidance you need in negotiating child custody arrangements and can make sure tax considerations and other important concerns get addressed in your final order. To protect your rights, request a consultation today with our experienced San Jose child custody lawyer.

Sources:

irs.gov/faqs/filing-requirements-status-dependents/dependents/dependents-3

leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=FAM&division=8.&title=&part=2.&chapter=2.&article=

irs.gov/pub/irs-pdf/f8332.pdf