Divorced Mom? Maximize Your Tax Savings with These Financial Strategies!

Retirewelldallas115 Jan, 2025Other

When going through a divorce, understanding how child custody impacts taxes is essential. The IRS allows custodial parents to claim tax credits, such as the Child Tax Credit (CTC) and the Child and Dependent Care Credit. However, the custodial parent is typically the one eligible to claim these credits unless otherwise agreed upon in the divorce settlement. One of the primary tax breaks you can claim is the Child Tax Credit (CTC), which allows up to $2,000 per qualifying child under age 17. The CTC can significantly reduce your taxable income.