How can divorced or separated parents claim child-related tax benefits?

Divorced or separated parents can claim child-related tax benefits by determining who claims the child as a dependent based on IRS rules. This process involves understanding the specific eligibility criteria set by the IRS, which dictates how parents can allocate the dependent status between them.

Typically, the custodial parent—who the child lives with for the greater part of the year—has the right to claim the child as a dependent. However, non-custodial parents can also claim the child if they provide the IRS Form 8332, which the custodial parent must sign to release their claim.

This systematic approach ensures that only one parent can claim the child for tax benefits in a given tax year, thus preventing duplication of claims and ensuring compliance with IRS regulations. It's a structured mechanism that not only facilitates clarity for parents but also safeguards against tax evasion.

In contrast, simply alternating claims every year or filing jointly may not align with IRS guidelines and could lead to potential disputes or issues with tax filings. Additionally, claiming both parents as dependents would not be permissible under IRS rules, as only one parent can claim the child to avoid conflicting claims.