This year’s tax season is in full swing. The IRS requires tons of paperwork, and it is important to take the time to make sure the tax filings are correct. Those Georgia residents who are getting a divorce or are thinking about getting one will want to focus on how their tax liability may be affected. The main change is that the parents will no longer be filing joint returns as a married couple. It thus becomes important to determine who will be able to claim any children as dependents on their separate tax return.
Years ago, knowing who could claim the children for taxes was fairly easy to figure out. Whomever the children lived with most during the year, also typically known as the custodial parent, could claim them. Now, more parents want an equal amount of time with their children. This can cause more complications when it comes time to file tax returns.
There are several options for dealing with the issue of tax deductions for any covered children. Some parents agree to claim the children every other year. If there are multiple children, some agree that one parent claim a set number of children and the other parent claim the rest of the children.
Settling who can claim the children on tax returns after a divorce can save a lot of time and stress for the parties involved. Keeping divorced parents from fighting can also shelter children from emotional distress. In Georgia, paying the IRS the smallest amount that is lawfully possible is the ideal outcome. Not having to fight about which parent can claim the children on taxes can also go a long ways toward building on the cooperation needed to continue raising the kids.
Source: The Huffington Post, Children of Divorce: Who Gets the Tax Exemption?, Stann Givens, March 13, 2014