Divorce and Dependents: Who Claims the Kids?
It can get messy if both parents try to claim the dependency exemption.

If you are divorced and have children, only one parent can claim the dependency exemption worth $3,300 each qualifying child on 2006 tax returns. The parent who claims the dependency exemption is also entitled to the $1,000-per-child tax credit for kids under 17, assuming your income is not too high. (You lose some or all of the credit if you file a married filing separately return and your income exceeds $55,000 or claim head of household status and your income tops $75,000.)
Normally, who gets to claim a child as a dependent is a pretty straight-forward decision. Either your divorce decree names the custodial parent. If your divorce documents are silent on the issue, then it's a simply matter of time: You are considered the custodial parent if you child lived with you for a longer period during the year than with your ex.
It's even possible for the non-custodial parent to claim the exemption if the custodial parent signs a waiver pledging that he or she won't claim it. (The non-custodial parent should attach the waiver, Form 8332, to his or her tax return.)
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
But what happens if your ex doesn't play by the rules and claims a dependency exemption that's rightfully yours? Well, things could get messy for awhile.
If your ex beats you to the punch and files his or her tax return first, it is possible that he or she would be allowed the exemption -- at least temporarily, says IRS spokesman John Lipold. But once your return enters the system and the IRS computers detect a duplicate Social Security number (your child's) being claimed by another taxpayer, the fun begins. "The IRS would look at both returns, and if the parents can't agree on who claims the exemption, then the IRS would apply the tie-breaker rule," Lipold says.
The tie-breaker rule dictates that if two parents both claim the same child as a dependent, the IRS will decide in favor of the parent with whom the child lived for the longer period of time during the year. And if the child spent an equal time with each parent, then the parent with the higher adjusted gross income gets the exemption.
But all that could take a while. In the meantime, your tax return could be adjusted to reduce your refund or increase your amount of tax due until the dependency issue is resolved. It could even trigger an audit. Once the issue is resolved, the parent who wrongly claimed the exemption would be required to repay the tax, plus interest and penalties.
For more information, see our Life Stages section on divorce and taxes or consult IRS Publication 504, Divorced or Separated Individuals.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

-
Sam's Club Extends A Popular Shopping Perk
Sam's Club has adopted a new policy on Sundays and holidays. Learn what it is and how to save on a membership.
-
The Ultimate Cruise Packing List for Retirees
Ready to set sail on your dream cruise? Here’s a no-fuss packing list tailored for older travelers to keep your trip stress-free.
-
Claiming the Standard Deduction? Here Are Five Tax Breaks for Retirement in 2025
Tax Tips If you’re retired and filing taxes, these five tax credits and deductions could provide thousands in relief (if you qualify).
-
IRS Names Its First CEO: But He’s Also Still Running Social Security
Tax News Will this new role make it difficult to address emerging issues like budget and staffing cuts and customer service concerns?
-
Three Popular Tax Breaks Are Gone for Good in 2026
Tax Breaks Here's a list of federal tax deductions and credits that you can't claim in the 2026 tax year. Plus, high-income earners could get hit by a 'surprise' tax bill.
-
IRS Phasing Out Paper Checks: What Happens After September 30?
Tax Changes Avoid delays when IRS tax refunds and Social Security paper checks are cut off. Here’s what to know.
-
Ask the Editor, September 12: Tax Questions on 529 Plan Rollovers to a Roth IRA
Ask the Editor In this week's Ask the Editor Q&A, we answer four questions from readers on transferring 529 plan money to a Roth IRA.
-
IRS in Turmoil: GOP Budget Cuts and Staff Shake-Ups Threaten Taxpayer Services
IRS Republican lawmakers advance a controversial budget bill that would gut IRS funding further, risking your 2026 tax filing season.
-
Ask the Editor, September 5: Tax Questions on SALT Deduction
Ask the Editor In this week's Ask the Editor Q&A, we answer questions from readers on the OBBB's changes to the SALT deduction.
-
Claiming the Standard Deduction? Here Are 10 Tax Breaks For Middle-Class Families in 2025
Tax Breaks Working middle-income Americans won’t need to itemize to claim these tax deductions and credits — if you qualify.