Myriad of options for divorcing parents

In the third column of the season, Nicole M. Harrell answers questions on married couples filing separately and claiming a dependent over age 21

March 21, 2005

Every Monday through April 18, local tax experts will answer selected questions this tax-filing season.

To be included in the following weeks, please use the form at the right side of this page to submit your questions.

Dennis, Bowie: My wife and I separated in December. We contributed an equal amount to our daughter's support and want to know who can claim her? How is that determined? We are married, filing separately.

Harrell: Dennis, because you and your wife contribute equally to the support of your daughter, either one of you [can] claim her as a dependent on the return, but typically the custodial parent claims the child when there is equal support. If possible, together, you should determine who would benefit the most from claiming the child as a dependent, especially if one of you qualifies for earned income credit.

There is another alternative. If there is a legal separation or divorce decree in place by the last day of the year, both of you may be able to benefit and neither one of you would have to file married filing separate. One person may be able to file head of household and [would] not claim the child as a dependent, and the other parent [may] file as single and claim the child [as] a dependent. This way, you both will pay less in taxes then if you filed married filing separate.

Melenie, Glen Burnie: Can a child over [the age of] 21 be claimed as a dependent if the child did not work that entire year for medical reasons and resided at my residence? The child received no income of any kind during that year and thus does not intend to file an income tax form.

Harrell: Melenie, you can claim a child who is over 21 as a dependent on your return if you met all of the following tests: (1) you provide more than one-half of the support for the dependent; (2) the dependent bears a qualified relationship to you or is an individual who bears no relationship to you but lives in the home that you occupy and you pay more than half the household expenses; (3) the dependent is a U.S. citizen, resident or national; and (4) the dependent's earned income is less than $3,100 for 2004.

The gross income test would not apply if the dependent is your child under 19 or 24 and a full-time student for at least five months during the year. You can review the IRS publication 501, exemptions, standard deduction and filing information to obtain further explanation.