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Financial Planning / Tax Strategies


Subject:  Re: Dependents, divorce decrees, and custody Date:  10/22/2013  6:21 AM
Author:  TMFPMarti Number:  119378 of 127753

What happens when custody changes from 50/50 between parents of minor children to 67/33%?
. . .
My opinion was: the IRS doesn't care WHAT the divorce decree says, they have their own rules about dependents, and it matters who provides more than half the support for the child(ren) in question.

In order, right and wrong. What matters is who has the child more than 50% of the time during the year. That person is the "custodial" parent and controls the child's personal exemption. See Publication 501.

Now, the court may impose penalties or sanctions for not following the divorce decree, but I don't think the IRS will impose penalties based on someone not following it.]

As noted, the IRS doesn't care what the decree says. State courts may very well care, and shame on the lawyer who drafted the revised custody order without addressing the taxes.

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