Illinois marital and divorce law was recently changed to redefine “custody” as “parenting time.” Under the new law, the parenting time is split between the parents. In most cases, one parent ends up with the majority of the parenting time (determining which party gets the most parenting time depends on a number of factors to be considered by the judge ruling in the matter). In some cases, especially in amicable divorces, the parties may agree on a parenting plan that divides up the parenting responsibilities between them. They then merely ask a judge to approve their plan.
The parent awarded the majority of the parenting time is known as the “custodial parent,? for situations where certain federal or state statutes still require use of the designation. Generally, this distinction also falls on the parent who gets the primary parental and decision-making responsibilities of the children, but sometimes, such as in the case of a 50-50 parenting arrangement, it is a technicality defined in the parenting plan. Although the term “custody” no longer has any meaning in the context of Illinois family law, it is still used for the purpose of designating one parent that can claim the children as dependents on their tax returns.
In some cases, parents may agree to a Parenting Plan that divides the parenting time equally between the parties and gives them both parental responsibility of the child. As mentioned above, even if the parents are able to work out such an agreement, Illinois law requires one of them to be labeled the “custodial parent” for tax purposes. In order for the other parent to be able to claim the child as a dependent on their tax forms, the designated “custodial parent” must fill out a Form 8332 in order to sign off on the other parent’s right to claim the child dependency tax exemption.
If you and your ex-spouse agreed to evenly divide the parenting time and responsibilities between you, one of you should still have been labeled the “custodial parent.” If that title went to the other party, you can ask them to fill out Form 8332 so you can claim your children as dependents on your tax form and take the coinciding deduction.
It is most common for parents to agree to alternate the child exemption, regardless of who was given the title of “custodial parent.” The reason being that the non-custodial parent is still often paying child support for purposes of assisting with the child?s needs when the child is in the care of the custodial parent.
If such was the case for you and your ex-spouse, you might want to check in with them regarding whose turn it is. Whoever did not get to claim the tax credit the year before should get to claim it this year. If this is your first time filing taxes after the separation or divorce, talk with the other parent to make sure you’re both on the same page when it comes to filing taxes. You can choose to have the “custodial parent” claim the exemption first and switch off from there or work out another system that works for both of you. It is always best for there to be a court order that clearly defines the tax dependency arrangement, including who can file and whether that parent can file in even or odd tax years.
When filing your taxes, it also helps to get a written declaration from the custodial parent that they will not claim the child as a dependent and have them attach the declaration to their tax return. This would expedite the resolution of any issues filing your return.
No matter your situation, it is always best to maintain open and respectful communication with your ex-spouse regarding the parenting of the children and the terms of the divorce. It makes everything much easier, including the children’s ability to adjust to their new circumstances.
If you are having any family law issues, consulting a knowledgeable?attorney?can help. At?Sherer Law Offices, we can guide you through the legal steps you need to take to ensure your rights are protected.