The terms of a child custody order are important because they dictate how much time a parent will have with his or her child, as well as decision-making authority. They may also play a critical role in deciding how Mississippi parents will share financial responsibilities. For many parents with joint custody, it is not always easy to determine who will pay for what or how child custody will affect taxes.
The implications for taxes
Taxes can be especially complicated for parents post-divorce. Which parent will be able to claim the child on his or her taxes? Some of the following facts may help one understand this important financial issue:
- In most cases, the custodial parent is the one eligible to claim the child on taxes.
- If the parents split physical custody, they may choose to alternate who claims the children each year or divide the number of children they are claiming.
- The custodial parent will be the one who can claim any child tax benefits available.
- Noncustodial parents may not be able to claim any benefits if the child does not meet certain residency requirements.
It can be helpful for Mississippi parents to consider the tax implications of all custody-related decisions they make during divorce.
What’s best for the kids?
The primary goal of any custody-related decision should be the best interests of the child above all else. However, a parent may benefit from understanding how these choices will affect long-term financial security. Before making any decisions, it may be helpful to discuss options with an experienced attorney.