01/23/2025
🚨 Rumor Alert: Can My Child's Father Claim The Child On His Tax Return, If He Is Paying Child Support For The Child? 🚨
There’s a rumor spreading online claiming that a new rule allows parents paying child support to claim the child as a dependent, taking away tax benefits like the Earned Income Credit (EIC) and Child Tax Credit (CTC) from the parent receiving child support.
One viral post says:
“Trump just tweeted, if you put your child's father on child support, you can’t claim income taxes… If he paying child support, you can’t claim the kids, only he can.”
👉 Is this true?
No, this is false. There has been no Executive Order, IRS regulation, or law passed to change the current rules regarding who can claim a child for tax purposes.
👉 Could this happen?
Possibly, but there is always a process that must be followed before a bill becomes a law. New tax laws start as ideas from Congress or the President. These ideas are written down as bills and sent to groups in Congress to study and make changes. If the bill is approved, it goes to the President, who can sign it to make it a law, say no to it (veto), or do nothing (and it might still become a law). After it's a law, the IRS figures out the rules, updates tax forms, and teaches people how to follow it. Then, everyone has to follow the new law when they pay taxes.
Who Can Claim a Child for Tax Benefits?
The IRS sets strict qualifications for who can claim a child for the Earned Income Credit (EIC) and the Child Tax Credit (CTC). These are based on IRS regulations under Section 152 of the Internal Revenue Code (IRC) and related rules.
1️⃣ Relationship Test (IRC §152(c)(2)):
The child must be your:
Biological child, stepchild, foster child (placed by an agency or court), or a descendant of any of them (like a grandchild).
Sibling, half-sibling, or step-sibling, or a descendant of any of them.
2️⃣ Age Test (IRC §152(c)(3)):
For the EIC: The child must be under 19 years old at the end of the tax year, or under 24 if a full-time student. No age limit applies if the child is permanently disabled.
For the CTC: The child must be under 17 at the end of the tax year.
3️⃣ Residency Test (IRC §152(c)(1)(B)):
The child must live with you for more than half the year. Exceptions apply for divorced or separated parents if one parent signs IRS Form 8332 releasing the claim to the child.
4️⃣ Support Test (IRC §152(c)(1)(D)):
The child cannot have provided more than half of their own financial support during the year.
5️⃣ Tie-Breaker Rules (IRS Publication 501):
If both parents meet the criteria to claim the child, the IRS has "tie-breaker rules" (based on custody, income, and written agreements) to determine who has the right to claim the child.
Key Note for Divorced or Separated Parents:
By default, the custodial parent (the parent with whom the child spends more nights during the year) is eligible to claim the child. However, the custodial parent may transfer this right to the non-custodial parent by signing IRS Form 8332 (Release/Revocation of Claim to Exemption for Child by Custodial Parent).
If you’re confused about your specific situation or need help navigating these rules, reach out to Foster Income Tax and Business Services for guidance. We’re here to help you maximize your tax benefits while staying compliant with IRS regulations.
📞 Contact us today! 409-379-5239
