What are the tax laws for joint custody for child(ren) in Michigan?

Question

I have joint legal custody of my 2 children and have not gotten any deductions since my divorce. My ex-wife has always gotten both children to deduct. I heard it is a federal law that the physical custodial parent gets to claim them.

Answer 1

Generally, the IRS looks at several things in determining deductions for dependents.

1) Does the Decree of Divorce specify who may claim the children for purposes of dependents?
a) If yes, then the IRS will follow that decree.
b) If no, then go to #2.
2) If the Decree of Divorce is silent, then the parent with whom the child has lived for more than 50% of the year may claim the deduction.
3) Have you at any point signed any IRS paperwork allowing your ex-wife to claim the children? If so, then you may need to rescind those documents.

I suggest that you contact a tax professional there in Michigan who can review your situation with you and give you more specific advice. Federal income tax does not change from state to state, but Michigan may have different rules for determining dependents on a Michigan state tax return, and a tax professional in Michigan will be aware of those.

Answer 2

Nope. It is normally a decision made in the divorce decree when joint custody is decided, and normally the Court splits the deductions.

However, if you rely on federal tax law, the person that provides more than 50% of the cost of supporting the dependent gets the deductions.

So, if your decree is silent, you look to who provides the most value for support. If your joint custody is joint in name only, then she probably rightly gets the deductions. I know of one case where the divorced couple, by accident, wound up living across the street from one another. Their kids could sleep one night with Dad & the next with Mom, and it was easier to manage if one couldn't take them to school but the other could. However, that is very unusual. Normally, even though joint custody is ordered, in fact it looks more like custody to one parent and visitation to the other.

** Note: This is a general discussion of the subject matter of your question and not legal advice. Local laws or your particular situation may change the general rules. For a specific answer to your question you should consult legal counsel with whom you can discuss all the facts of your case. **

Answer 3

The parent responsible for 51% or more of the financial cost of raising the child gets the deduction.

That may or may not be the parent with physical custody. As a general rule if there's joint legal custody then the costs should be split 50-50, so the normal practice would be for you to deduct one each.

Richard

Answer 4

If Michigan is like Massachusetts then here's how it works. The mother gets physical custody always unless she surrenders it. If the mother retains physical custody you are to pay about 30% of you gross income maybe more because your a dad. If the mother gives the custody to the father then she is required to pay very little or nothing in most cases. Also the mother almost always has the right to claim the children.