...
By Jenni Fink
Senior Editor
0
Share
Newsweek is a Trust Project member
See more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.
Claiming dependent children can lower a person's taxable income, but for millions of divorced or separated parents, they may be unable to claim the child.
More than 4 million people pay child support each year, and for some, it comes with shared custody of a child, leading them to believe they can claim the child on their taxes. But Internal Revenue Service (IRS) rules generally tie dependency to custody, not child support, so parents who are paying into the system may not be eligible to claim the child as a dependent on their tax return. The Child Tax Credit is now worth up to $2,200 per qualifying child, with up to $1,700 refundable, making the ability to claim a dependent more valuable than in prior years.
With rising costs and complex household arrangements, the issue of which parent can claim a child as a dependent has become more pressing because Americans are trying to maximize their tax return. And, claiming a child as a dependent incorrectly can require a person to repay the credit, plus interest and even a penalty.
Read More on Personal Finance
Some parents who pay child support may be eligible to claim their child on their taxes, but it depends on specific situations.
If You Pay Child Support, Can You Claim a Child as a Dependent on Your Taxes?
In most cases, paying child support doesn't allow you to claim a child as a dependent on a tax return. Under IRS rules, the parent who has custody—defined as the parent the child lived with for more than half the year—has the default right to claim the child as a dependent, regardless of which parent pays child support.
A noncustodial parent can only claim the child if the custodial parent formally releases the claim using IRS Form 8332. Without that signed form attached to the tax return, the IRS may deny the dependency claim, even if a divorce decree or child support order says otherwise. Courts may award a dependency claim in a divorce agreement, but the IRS will still require Form 8332 for post-2008 divorces, making federal tax rules stricter than many family court orders.
Form 8332 allows the custodial parent to transfer certain tax benefits—such as the Child Tax Credit, Additional Child Tax Credit and Credit for Other Dependents—to the noncustodial parent.
...
How Long Can You Claim Your Child as a Dependent?
For parents receiving child support, it may make sense that they can claim the child as a dependent for the length of time they're receiving child support. However, that's not a factor, and the IRS determines how long a parent can claim a child as a dependent based on their age, student status and disability.
A child generally qualifies as a dependent if they are under age 19, or under age 24 if they are a full-time student for at least part of five months during the year. There is no age limit if the child is permanently and totally disabled.
Once a child no longer meets the “qualifying child” tests, a parent may still be able to claim them as a qualifying relative, but only if the parent provides more than half of the child’s financial support and the child’s gross income stays below the IRS threshold for that year.
For noncustodial parents, these age rules only matter if Form 8332 is in place. Without it, the custodial parent retains the right to claim the child, even if the noncustodial parent continues paying support into adulthood.
How Much Is the Child Tax Credit in 2026?
For the 2025 tax year, the Child Tax Credit is worth up to $2,200 per qualifying child under age 17, according to the IRS. Up to $1,700 of that amount is refundable through the Additional Child Tax Credit, depending on income.
The credit begins to phase out for single filers earning more than $200,000 and married couples earning more than $400,000. Children must have valid Social Security numbers, and the taxpayer claiming the credit must be eligible to claim the child as a dependent.
Can You Deduct Child Care From Your Taxes?
Child care costs are not deductible, but eligible parents may qualify for the Child and Dependent Care Credit, which reduces taxes based on care expenses incurred so the parent can work or look for work.
For most families, the credit is calculated on up to $3,000 in expenses for one child or $6,000 for two or more children, with a percentage ranging from 20 percent to 35 percent depending on income. The credit is nonrefundable, meaning it can reduce taxes owed but will not generate a refund by itself.
For divorced parents, the IRS generally treats the custodial parent as the eligible claimant for this credit—even if the noncustodial parent claims the child as a dependent using Form 8332. The credit is tied to where the child lives and who pays for care, not who claims the dependency exemption.
That distinction surprises many parents who assume that claiming a dependent automatically unlocks all child-related tax benefits. In reality, the tax code separates dependency, residency and caregiving expenses into different eligibility categories.
Do You Have to Pay Taxes for a Nanny?
Parents who hire a nanny or other in-home caregiver may also face unexpected tax obligations. Under IRS rules, a nanny is typically considered a household employee, not an independent contractor. Failure to properly report nanny wages can result in penalties, back taxes and interest.
If a family pays $3,000 or more in cash wages to any one household employee in 2026, they must withhold and pay Social Security and Medicare taxes—commonly known as the “nanny tax”—and may also owe federal unemployment tax.
These rules apply regardless of marital status or custody arrangements. For divorced parents sharing child care responsibilities, compliance can become complicated if each household separately employs caregivers.
In a polarized era, the center is dismissed as bland. At Newsweek, ours is different: The Courageous Center—it's not "both sides," it's sharp, challenging and alive with ideas. We follow facts, not factions. If that sounds like the kind of journalism you want to see thrive, we need you.
When you become a Newsweek Member, you support a mission to keep the center strong and vibrant. Members enjoy: Ad-free browsing, exclusive content and editor conversations. Help keep the center courageous. Join today.
View 0 Comments
Submit Correction
View Editorial & AI Guidelines