Tips from the IRS for claiming a child as a dependent when parents are divorced, separated or live apart

Parents who are divorced, separated, never married or live apart and who share custody of a child with an ex-spouse or ex-partner need to understand the specific rules about who may be eligible to claim the child for tax purposes. This can make filing taxes easier for both parents and avoid errors that may lead to processing delays or costly tax mistakes.

Only one person may be eligible to claim the qualifying child as a dependent.

Only one person can claim the tax benefits related to a dependent child who meets the qualifying child rules. Parents can’t share or split up the tax benefits for their child on their respective tax returns.

It’s important that each parent understands who will claim their child on their tax return. If two people claim the same child on different tax returns, it will slow down processing time while the IRS determines which parent’s claim takes priority.

Custodial parents generally claim the qualifying child as a dependent on their return.

  • The custodial parent is the parent with whom the child lived for the greater number of nights during the year. The other parent is the noncustodial parent.
  • In most cases, because of the residency test, the custodial parent claims the child on their tax return.
  • If the child lived with each parent for an equal number of nights during the year, the custodial parent is the parent with the higher adjusted gross income.

Tie-breaker rules may apply if the child is a qualifying child of more than one person.

  • Although the child may meet the conditions to be a qualifying child of either parent, only one person can actually claim the child as a qualifying child, provided the taxpayer is eligible.
  • People should carefully read Publication 504, Divorced or Separated Individuals to understand who is eligible to claim a qualifying child.
Courtesy of the Internal Revenue Service

Noncustodial parents may be eligible to claim a qualifying child.
Special rules apply for a child to be treated as a qualifying child of the noncustodial parent.

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Convictions Affirmed for Harassment and Tampering with Parole Officer 

Statutes provide that the elements of second-degree harassment include “to act ‘without good cause’ and with ‘the purpose to cause emotional distress [.]’” Those provisions apply to communications without implicating First Amendment protections because those provisions rely on purpose instead of subjective reaction, giving notice and a standard, and narrow the application to the unprotected activity of fighting words. Fighting words are outside constitutional protection even when delivered through Facebook, and not face-to-face, so defendant’s threats to his parole officer supported a conviction for the second-degree harassment. Those facts also supported a conviction for tampering with a judicial official, and a separate sentence for that offense was no more than the General Assembly intended, so it did not violate Double Jeopardy’s bar on cumulative sentencing. Second-degree harassment was not a lesser included offense of tampering with a judicial official because the test is not the facts alleged, but the elements of the statutes. The statutes have differing elements, so conviction of one does not necessarily constitute conviction of the other, taking them outside of Double Jeopardy.  
State of Missouri, Respondent, vs. Joshua Steven Collins, Appellant. 

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Castle Doctrine Covers Cars 

An instruction is due when it has support in substantial evidence. Evidence showed that defendant shot persons who ran at defendant with a firearm, and punched defendant through defendant’s open car window, so an instruction was due under statute embodying the Castle Doctrine. The Castle Doctrine allows deadly force reasonably believed necessary against unlawful force from a person who unlawfully entered her vehicle. Evidence that the person who struck defendant withdrew immediately does not negate the evidence that the unlawful entry and gunshot occurred simultaneously. Submitting only a general self-defense instruction prejudiced defendant because that instruction required defendant to show that defendant faced death or serious physical injury. When the evidence supported instructions for both general self-defense and Castle Doctrine, both instructions were due. Remanded for new trial.

State of Missouri, Respondent, vs. Andrea Shaunte Straughter, Appellant. 
Supreme Court of Missouri – SC99170

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Supreme Court of Missouri renounces use of photograph for political purposes

Recently, the Supreme Court of Missouri found out about a campaign mailer of Attorney General Eric Schmitt’s that features a photograph of Schmitt with three of the Court’s judges. The photograph was taken at a public event that the judges attended during the state’s bicentennial celebration last August. The judges attended the event as a celebration of the different branches of state government working together. The photo was taken with neither the Court nor its judges knowledge that it would go one to be distributed in a political context.

None of the judges did – or ever would – consent to their names, titles or likenesses being used in any political context. The Court hopes that Missouri citizens know that no Supreme Court judge would or could endorse a political candidate, and this photo should not be taken as such an endorsement despite the implication of the mailer.

Article V, section 25(f) of the Missouri Constitution prohibits Supreme Court judges from engaging in any political activity. They are reporting the incident as required by their judicial code of conduct and legal ethics. Meanwhile, the Court has asked the attorney general’s office to delete this photograph and any others like it from the office’s public or social media accounts to help prevent any further inappropriate use of such images.

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Judgment Not Final Without Ruling on Attorney Fees

Absent other exceptions, the only circuit court ruling that is subject to appeal is a final judgment, meaning a writing denominated as a judgment that addresses all claims as to all parties. Judgment addressed all claims as to all parties except each party’s claim for attorney fees. “An unresolved claim for attorney’s fees can arrest the finality of a judgment, and defeat appellate jurisdiction.” Appeal, cross-appeal, and claims for attorney fees on appeal dismissed.  

David & Amy Schmidt vs. Dart Bein, LC 
Missouri Court of Appeals, Western District – WD84253, WD84490, and WD84491

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Challenges to Vaccination Exemption Form Unsuccessful

“In Missouri, it is unlawful for any student to attend school unless he or she is properly immunized and can provide satisfactory evidence of such immunization or unless he or she is properly exempted.” Nothing requires the State to provide an exemption to a neutral and generally applicable mandate on religious grounds, but Missouri has elected to do so, through statutes providing that proper exemption is subject to regulations of the Missouri Department of Health and Senior Services. Those regulations require the use of a prescribed form. That regulation is within statutory authority, does not violate the Missouri Religious Freedom Restoration Act, has a rational relationship to the State’s interest in preventing childhood disease, does not bar the expression of religious beliefs, and does not compel complicity in vaccination in violation of any constitutional provision.

For plaintiff to state a claim against defendant, plaintiff must describe a justiciable controversy. A justiciable controversy in an action for declaratory judgment, bringing a pre-enforcement challenge to a provision of law, includes the defendant’s authority to enforce the challenged provision against the rights of the plaintiff. The plaintiffs did not allege that defendant local health authorities had any authority over, or made any attempt to enforce, the use of a form for exemption to vaccination requirements prescribed by the Missouri Department of Health and Senior Services. Judgment on the pleadings, dismissing the petition, affirmed. 

Audrey Baker, et al. vs. Crossroads Academy-Central Street, et al. 

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Todd and Julie Chrisley Found Guilty on Federal Charges

Todd and Julie Chrisley, stars of the reality television show “Chrisley Knows Best,” were recently found guilty in Atlanta on federal charges including bank fraud and tax evasion. The Chrisleys were initially indicted in August 2019 and a new indictment was filed in February 2022. A jury found them guilty of conspiring to defraud community banks out of more than $30 million in fraudulent loans, according to the office of U.S. Attorney Ryan Buchanan in Atlanta. They were also found guilty of conspiring to defraud the IRS and tax evasion, and Julie Chrisley was convicted of wire fraud and obstruction of justice.

Prosecutors alleged that the Chrisleys submitted fake documents to banks when applying for loans. They said Julie Chrisley also submitted a false credit report and fake bank statements when trying to rent a house in California. They used a company they controlled to hide income to keep the IRS from collecting unpaid taxes owed by Todd Chrisley, prosecutors said. After they were found guilty, U.S. District Judge Eleanor Ross allowed the Chrisleys to remain free on bond. But she placed them on location monitoring and home detention, meaning they can only leave the house for certain reasons, including work, medical appointments and court appearances. They also have to alert their probation officers to any spending over $1,000, according to the order. Peter Tarantino, an accountant hired by the couple, was found guilty of conspiracy to defraud the United States and willfully filing false tax returns, the U.S. attorney’s office in Atlanta said. He also remains free on bond.

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CFPB Seeks Ban Against Operator of Student Loan Debt Relief Scam Reboot

The Consumer Financial Protection Bureau (CFPB) has taken action against the owner of a student-loan debt relief company for allegedly withdrawing hundreds of thousands of dollars from student borrowers’ bank accounts, without authorization . The CFPB alleges that Frank Gebase, Jr. controlled a company that took the borrowers’ money after obtaining their names and account information from a previous student-loan debt-relief scammer that the CFPB shut down. The CFPB’s proposed settlement, if entered by the court, would ban Gebase from the debt-relief industry and order him to pay a penalty. On March 30, 2016, the CFPB ordered Student Aid Institute to shut down its debt-relief operations and rescind all of its consumer agreements. Gebase had leased office space to Student Aid Institute, and he was a longtime associate of its principal. In 2016, Gebase founded Processingstudentloans in San Diego, and he was the founder, sole owner, CEO, and sole corporate officer.

The CFPB alleges that from approximately May 20, 2016 to April 5, 2017, Processingstudentloans was a non-bank provider of student-loan debt-relief services. As alleged in the complaint, without authorization, Processingstudentloans collected recurring fees from customers, typically $39 per month, stealing hundreds of thousands of dollars in total fees from hundreds of student loan borrowers. In addition to controlling Processingstudentloans and facilitating the debits, Gebase was aware or should have known that the debits were unauthorized and unlawful. By April 2017, under this scheme, Gebase’s company had unlawfully debited more than $240,000 from hundreds of student borrowers’ accounts.

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Ex-San Antonio Lawyer Accused of Stealing Millions Has ‘Medically Related Issues,’ His Attorney Says

Ex-San Antonio attorney Christopher Pettit has been sued for allegedly absconding with his former law clients’ money. He’s landed in bankruptcy and he’s surrendered his law license. Pettit is also dealing with “medically related issues,” his attorney disclosed during the first hearing in Pettit’s massive bankruptcy case. Bankruptcy lawyer Michael Colvard declined to reveal his client’s medical issues but told a San Antonio judge that Pettit was referred to another lawyer who works closely with the Texas Lawyers Assistance Program. The program helps attorneys who have “substance use and other mental health issues,” according to its website.

Pettit, who specialized in estate planning and personal-injury law, has been sued at least 14 times by former clients who say he stole millions of dollars from them. He has issued general denials to the allegations in some of the cases but has entered into judgments with some plaintiffs — agreeing to pay them actual and punitive damages. Pettit and his law firm filed for chapter 11 protection June 1, essentially putting a hold on the pending litigation. He listed $27.8 million in assets and $115.2 million in liabilities in his personal bankruptcy, making it one of the largest ever filed in San Antonio. He has given up his law license in lieu of disciplinary action by the State Bar of Texas. Bankruptcy Judge Craig Gargotta agreed to the appointment of a chapter 11 trustee, who will essentially act as a CEO or manager to shepherd the bankruptcy cases and appoint professionals, including forensic accountants to track down money and other assets for the benefit of Pettit’s former clients and other creditors.

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CFPB Report Highlights Experiences of Military Families with Medical Billing, Credit Reporting, and Debt Collection

The Consumer Financial Protection Bureau (CFPB) recently released its annual report on the top financial concerns facing servicemembers, veterans, and military families, based on the complaints they submitted to the CFPB. Servicemembers told the CFPB about billing inaccuracies and that debt collectors used aggressive tactics to recover allegedly unpaid medical bills. Servicemembers also reported failures by credit reporting companies in helping to resolve inaccuracies and other credit reporting issues.

“Errors on credit reports can jeopardize servicemembers’ financial readiness, and ultimately, their ability to protect our nation,” said CFPB Director Rohit Chopra. “No servicemember, veteran, or military family should be subject to credit reporting rumors and innuendo, nor should they feel coerced to pay a bill they do not owe.” Servicemembers, veterans, and military families have now submitted more than 250,000 consumer complaints since the CFPB began collecting complaints in 2011. In 2021, they submitted more than 42,000 complaints to the CFPB. The most common types of complaints — more than 60% — were about credit reporting and debt collection.

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