it is usually more beneficial for the parent with the higher income to claim the children. However, in case that parent's income is so high to prevent him/her from obtaining the Earned Income Credit or the Child Tax Credit, then the other parent should claim the children.
This will usually be the person the child lives with most of the time. If you can't reach an agreement, you can both make a claim and let HMRC decide who will get the Child Benefit. There are complicated rules about who has priority but HMRC will usually give Child Benefit to the person the child lives with the most.
The taxpayers who provide multiple support for a dependent decide among themselves who will claim the dependent for the year. Volunteer tax preparers do not decide. In most cases, the child is the qualifying child of the custodial parent.
In addition, they must be under 17 and have a Social Security number. If they meet these requirements, their work status or income likely won't affect their eligibility to be claimed as a qualifying child.
You can claim a child as a dependent if he or she is your qualifying child. Generally, the child is the qualifying child of the custodial parent. The custodial parent is the parent with whom the child lived for the longer period of time during the year.
Claiming a child does not create a “dollar for dollar” increase or decrease in child support, so it is important to specifically determine the benefit or loss. As a general rule, the parent who earns more taxable income receives a greater value for the dependency exemption.
Good Reasons
If your income disqualifies you from claiming these credits, your child's income probably doesn't disqualify him or her. Therefore, your child may be able to report payment of education expenses for tax purposes and then claim one of the credits – but only if you don't claim him or her as a dependent.
The child must have lived with you for more than half of the year.2 3. The person's gross income for the year must be less than $4,300.3 Gross income means all income the person received in the form of money, goods, property and services, that isn't exempt from tax.
If you do not file a joint return with your child's other parent, then only one of you can claim the child as a dependent. When both parents claim the child, the IRS will usually allow the claim for the parent that the child lived with the most during the year.
If you both try to claim the same child, the child will be treated as the dependent of: The parent with whom the child lived the longest amount of time during the year, or. The parent with the higher AGI if the child lived with both of you the same amount of time.
You qualify for the full amount of the 2024 Child Tax Credit for each qualifying child if you meet all eligibility factors and your annual income is not more than $200,000 ($400,000 if filing a joint return). Parents and guardians with higher incomes may be eligible to claim a partial credit.
Filing taxes as a single parent requires coordination between you and your ex-spouse or partner. Usually the custodial parent claims the child as a dependent, but there are exceptions. A single parent is allowed to claim applicable deductions and exemptions for each qualifying child.
Cons of Claiming a College Student as a Dependent
If your child has earned income and you claim them as a dependent, they lose the opportunity to claim their own personal exemption (when applicable in future years) and certain tax credits that could be more advantageous for them.
The Custody Ratio Tiebreaker
Under these rules, the parent who has physical custody of the child for the greater part of the year – defined as more than 50% of the nights – typically has the right to claim the child as a dependent for tax purposes.
It depends on your age. If you are under 19 (or under 24 if you are a full-time student), you parents can still claim as a dependent if you did not provide more than half of your own support in 2018, no matter how high your income was.
To meet the qualifying child test, your child must be younger than you or your spouse if filing jointly and either younger than 19 years old or be a "student" younger than 24 years old as of the end of the calendar year.
Changes to Certain Benefits
The five dependency tests – relationship, gross income, support, joint return and citizenship/residency – continue to apply to a qualifying relative. A child who is not a qualifying child might still be a dependent as a qualifying relative.
It's up to you. Since he qualifies as a qualifying child for each of you, either parent may claim the child as a dependent. If you can't decide, the dependency claim goes to whichever of you reports the higher Adjusted Gross Income on your separate tax return.
After the IRS decides the issue, the IRS will charge (or, “assess”) any additional taxes, penalties, and interest on the person who incorrectly claimed the dependent. You can appeal the decision if you don't agree with the outcome, or you can take your case to U.S. Tax Court.
If your parents meet eligibility criteria to claim you as financially dependent for tax purposes, it is usually more beneficial for them to do so rather than you claiming a deduction for yourself. Parents typically have a higher income since they are older and more established in their careers.
Child tax credit 2024
For 2024 (taxes filed in 2025), the child tax credit is worth up to $2,000 per qualifying dependent child.
You can claim a child who works as a dependent if they still meet the requirements to be a qualifying child – including the age, relationship, residency, and support tests.
The Child Tax Credit is one pro of claiming your child as a dependent. It's a tax benefit that every American taxpayer can claim for every qualifying dependent child they have. It was designed to help working families by directly decreasing the tax liability of the taxpayers in the family.