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Address tax issues in a child custody agreement

On Behalf of | Jun 21, 2019 | Child Custody

The filing deadline for 2018 income taxes has passed and unless Arizona residents secured extensions, they should have had their documents submitted to the government almost two months ago. Most people have received and spent their returns if they were entitled to get them, while others may still be looking for ways to minimize the burdens of having had to pay money. Those in this situation may be looking ahead to next year to find ways to reduce their possible tax obligations.

One way that individuals can cut down on their tax obligations is by claiming their children as dependents. When a person must support a child or other person who cannot provide for themselves, they are able to protect some of their income from assessment under the tax laws. When two parents share a child but are separated or divorced, though, it can be a confusing matter to determine who may claim the child on their taxes.

If the child is subject to a sole custody agreement, then their custodial parent may claim them. However, if they are subject to a shared custody agreement, particularly one that is split 50:50 between the parents, determining who may claim the child is more difficult. Parents may decide to alternate years regard who may claim the child as a dependent, or they may settle their own differences on the topic in their child custody and support agreement.

Decisions regarding tax obligations can be established in custody agreements and orders so that individuals do not have to confront these issues later on. To learn more about other important topics that may be settled in divorce related agreements and orders, readers can contact their trusted family law attorneys.