Splitting the Tax Benefits Between Parenting Partners

With all the discussion going on around the U.S. Presidential election, its hard to tell who will win and who will lose – when it comes to income tax levels, that is.

Yet despite the uncertainty, new parenting partners should pay attention to the fact that they can take advantage of some tax breaks for parents.  The trickier question is – which of the parenting partners will take the breaks on their tax return?

A trickier answer is – how about both?

If the idea of both parenting partners taking a tax break for their child may sound a bit fishy, its actually very straightforward. Parents may qualify for several different tax breaks – among them a deduction for dependents, and a separate deduction for a claim as “Head of Household”.

As long as the parenting partner who provides the child’s primary residence (the “custodial parent”) agrees to waive their right to claim the deduction for dependents, the non-residential parenting partner may take this deduction. At the same time, the custodial parent can still claim the “Head of Household” deduction and several other deductions.

For more information on splitting the tax benefits between parenting partners, see our article on tax breaks for parenting partners.