Which Parent Receives the Children’s Tax Exemption?

Oftentimes during divorce or parentage matters, the issue of which parent will receive the tax exemption for the minor child becomes a contested issue. In determining this issue, there are two relevant sections of law to examine.

The Illinois Marriage and Dissolution of Marriage Act specifically states, “[u]nless a court has determined otherwise or the parties otherwise agree, the party with the majority of parenting time shall be deemed entitled to claim the dependency exemption for the parties’ minor child.” 750 ILCS 5/505(a)(3)(C). 

The IRS website also provides insight by stating, “a party may claim a minor child as a dependent for tax purposes if the child is a ‘qualifying child.’” Specifically, a “child is the qualifying child of the custodial parent. Generally, the custodial parent is the parent with whom the child lived for a longer period of time during the year.” 

Applying a strict reading of the law, the parent who has majority parenting time will receive the tax dependency exemption. However, the Court has discretion to apply the law in the manner they deem fit, which has allowed for more flexibility in determining which parent receives the exemption.

In Domestic Relations Court, Judges will often also look to fairness to inform their decisions. The current trend within Cook County Domestic Relations is that Judges will decide the parties should alternate the tax exemption every year. Not every Judge follows the trend, but when the tax exemption is at issue, it is not guaranteed that the majority parenting time parent will receive it each year. Instead, the Judge may opt for the parents to alternate who receives the exemption each year, or have each parent claim one child each year if there is more than one child from the relationship. 

Contact The Law Office of Erin M. Wilson for a consultation at 312-767-4220 to discuss your divorce or parentage matter.

NOTICE: This blog is intended solely for informational purposes and should not be construed as providing legal advice. Please feel free to contact us with any questions you may have regarding this blog post.