Tax filing needs a lot of details and regulations to be followed. What happens if both parents claim the child on their taxes? Parents must adhere to the basic rules when claiming their child on their taxes. However, can both parents claim the same child on their taxes? The answer is no. A child can be claimed as a dependent only on one tax return.
If both parents file separate tax returns and claim the same child on their taxes, that could lead to some problems. To make this easier to understand, we’ve gathered all the information you need about what happens if both parents claim the child on their taxes. Let’s get right into it.
What Happens If Both Parents Claim The Child on Their Taxes?
The Internal Revenue Service (IRS) has clarified that once a tax return is filed with a dependent’s tax ID number, it will not accept another e-filed return with the same dependent, even if you try to make changes and remove the dependent from the first return. The IRS will reject the return immediately as if it never got filed.
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What Does It Mean To Claim a Child on Taxes?
Claiming a child on taxes means asserting that the child meets specific criteria, making you eligible for tax benefits associated with having a dependent. A dependent child receives at least half of their yearly support from you, including necessities such as food, clothing, shelter, and education.
There are specific tests and rules to determine if you can claim a child as a dependent. According to these rules, the child must be related to you as a son, daughter, stepchild, foster child, brother, sister, half-brother, half-sister, stepbrother, stepsister, or a descendant of any of those.
Additionally, the child must have lived with you for at least six months of the year. The child must be 18 or younger at the end of the year or under 24 if they are a student. To be considered a student, they must have attended school full-time for at least five months during the year, which do not need to be consecutive. If the child is totally and permanently disabled, their age does not matter.
Read related blogs: Childcare Contribution Tax Credit
If Both Parents Claim the Same Child on their Taxes, What are the Consequences?
A child cannot be claimed on taxes by both parents. However, if such a situation occurs, the IRS chooses the parent with whom the child has lived the most.
The child’s parents must discuss and understand who should file and claim their child on their tax return. If both parents claim the child on different tax returns, it will slow down processing time while the IRS decides which parent’s claim takes priority.
How Does the IRS Decide Which Parent Can Claim a Child on Taxes When Both Claim Them?
If both the parents of a qualified child are eligible to claim the child as dependent, then the IRS sends a letter to both parents stating that they must decide who gets to claim the child’s release. If the parents still cannot determine who receives the claim, then the IRS applies the tie-breaker rules. According to the tie-breaker rules, the child is considered a qualifying child only if they lived equally with both parents during the tax year. The one with whom the child has lived longer can claim them.
If the child spends equal time with each parent, the one with the highest Adjusted Gross Income (AGI) can claim them. If neither parent can claim the child as a qualifying child, the person with the highest AGI can claim them. If a parent can claim the child as a qualifying child but chooses not to, then a person with a higher AGI than any of the parents can claim the child.
Where Can I Find More Information About Claiming Dependents on Taxes?
You can refer to the official tax authority website for detailed information about claiming dependents on taxes. The IRS website provides complete information, forms, and guidelines related to tax matters.
The IRS offers Publication 501, a detailed guideline covering dependents, standard deductions, and filing status. The IRS also offers an Interactive Tax Assistant tool to help you decide if you can claim a dependent. You can consult a tax professional if you have a complex tax situation or are unsure about claiming dependents.
Conclusion
Being a parent and not having custody of your child is hard. You want to claim the child on your taxes, but your ex-partner does it before you. However, if your e-file has your child’s dependent ID number, the IRS will give you the right to have the child with you. Having a higher adjusted gross income than your ex-partner also results in having custody of the child.
Know the rules and procedures to secure a smoother tax filing process. Parents should also consult a professional who can help and provide advice and guidance on this particular topic. Also, check out the Beem app to get a free and accurate estimate of your federal and state tax refund.
