How Does Custody in DC Impact the Dependency Exemption for Your Children?
It is common, particularly around tax time, to wonder who is entitled to claim the dependency exemption for your children on your income tax return.
Usually, your DC Separation Agreement or divorce decree will specify which parent is allowed to claim the deduction.
Sometimes a Separation Agreement may say that only one parent is able to claim it. Some people agree to alternate years. You can also agree to change your DC custody agreement depending on who gets the most benefit from the deduction.
But, you both must agree to change custody in DC.
Does custody in DC always impact the tax deduction?
If you decide to change what you have agreed to and shift the deduction from one parent to another, you must fill out an IRS form to do so. If there is no mention of this deduction in your Agreement or your divorce decree, then the parent who has the child for more nights of the year is entitled to claim the deduction.
IT IS ALWAYS best to discuss this with a tax preparer and an experienced DC family law attorney to decide the best course of action in your situation.