Is there a new law in AL that states that the custodial parent can claim the children on state and fed taxes?

Answer 1

General custodial parents have the best chance of claiming children as dependents for Federal income tax purposes. Most states and Alabama follow the same rules as the federal. There are a number of circumstances that can allow non custodial parents to claim children, among them would be agreement between the parents or a court order. I am aware of no state that has made a rule that specifically names the custodial parent as the only proper person to take the children as dependents.

Answer 2

AL, or any other state, could not make a law about who could claim children for federal taxes - only the IRS publishes those rules.

Under IRS rules, the custodial parent has the right to claim any children, unless there is a written court order in the proper legal form saying that the other parent is allowed to claim them, or the custodial parent gives the other parent, in writing, permission to claim them.

This isn't something very new.

Answer 3

Federal law gives the exemption to the custodial parent automatically. The custodial parent is defined for tax purposes in Federal law as the parent with whom the children spend the most amount of time throughout the year.

Federal law does allow state courts to grant the exemption to the non-custodial parent, however the wording of the decree must meet very strict requirements for it to be enforceable. If the decree does not meet the strict standards laid out in Federal law, the IRS is legally obligated to disregard the decree and award the exemption in accordance with Federal law. See IRS Pub 501 for full details on that.

State law cannot dictate how Federal tax laws will be applied. State law CAN award dependency exemptions for State tax returns differently from Federal law; that is a State's prerogative.

Answer 4

There were some new rules that started in 2005, on who can claim a child. But the custodial parent has always had the right to claim a child unless it's specifically noted in the divorce decree how the exemption is to be handled or the custodial parent signs form 8332 giving that right to the non-custodial parent.