Child Dependency Exemptions and Tax Credits

In a Divorce Decree, one party is typically assigned the right to claim the minor child as a tax dependent for tax purposes.  If this issue is not addressed in the Divorce Decree, Internal Revenue Service rules state that the person who is awarded sole physical custody (or has the child for more than 50% of the time) can claim the child as a dependent for tax purposes.  If the party is awarded sole physical custody and claims the child is a dependant, he or she may also be eligible for the child tax credit.

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By Farhan Hassan

October 15, 2010

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