A recent U.S. Tax Court decision reinforces that parents with joint custody of children need to be careful when claiming head-of-household tax filing status and certain tax credits. The defendant filed as head of household and claimed the child tax and earned income credits. Yet his children stayed with him for less than half the year, and the children’s mother claimed them as dependents on her tax return. The father couldn’t substantiate his tax claims with a custody order or other documentation. Therefore, the court ruled he was ineligible to claim head-of-household status and the credits. Filing status rules can be complex. Contact us for help navigating them.
