The month of April is a beautiful time for rain, daffodils, and tax headaches. This is crunch time – do you know who’s claiming the children?
Arguments about taxes can get messy when a couple with children is splitting up, and it gets worse when the parties aren’t familiar with the tax law. Thousands of dollars may be at stake, especially if the Earned Income Tax Credit (EITC) is involved. There are exemptions, deductions, child tax credits, additional child tax credits – how do you sort it all out?
If the two of you can’t agree on how to fill out the forms, one of two things will happen. Either the IRS will settle the argument for you – and you risk having to pay back some of your refund - or you can hire a tax professional to explain the rules in your situation and then hire a mediator to help the two of you make both short-term and long-term decisions.
So what are the right questions to ask? Here are some suggestions for what to ask the tax professional. When you know what you can and can’t legally do, it will help your mediation sessions go more smoothly.
- First, ask what your filing status should be, especially if you are not divorced yet. It may affect your ability to take certain tax credits. Don’t forget to think ahead and ask how your tax status will change after the divorce.
- Second, ask about the special rules for divorced or separated parents. In some cases, you may be able to share tax benefits for each child.
- Third, don’t forget to ask about Form 8332. This form might turn out to be an annual event for you and your children’s other parent.
The IRS doesn’t really care which parent claims which child for which year, so long as the rules are followed and the parents don’t both try to get the same tax benefits at once. With that much money involved, though, your best move is to find out your options, make an appointment to mediate those decisions ahead of time, and get them in writing. At least you will have one less hassle at tax time!


