Child Tax Benefits

Following is a high-level summary of each of the possible child-related 2026 tax benefits available to parents who are divorcing or divorced but have children.  A CDFA or financially savvy divorce mediator can help you explore these further.

Head of Household Filing Status

This allows you to claim a standard deduction of $24,150 instead the $16,100 for the Single filing status.  You must meet three main requirements: be unmarried on the last day of the tax year, pay more than half the cost of keeping up your home, and have a qualifying person or dependent live with you for more than half the year.

Dependency Exemption

The $4,050 deduction per dependent was suspended in Trump’s Tax Cuts and Jobs Act of 2017.  It is still not available.  However, IRS Form 832 can still be used by the custodial parent to give the non-custodial parent the ability to claim a child on their tax return.  The non-custodial parent can thereby benefit from any of the following tax credits that may apply.

Child Tax Credit

To be eligible to claim the child tax credit, you must claim the child as a dependent on your tax return.  The child must have lived with you for more than half the year.  It only applies to children under 17.  The maximum amount of the credit is $2,200 per child.  It phases out for high-income parents.

Credit for Other Dependents

You can claim this credit for dependents of any age who meet IRS dependency rules but fall outside the Child Tax Credit.  This could apply to children aged 17 or 18 and full-time college students up to age 23.  The maximum credit amount is $500 for each qualifying dependent.

Child and Dependent Care Credit

This credit only applies to children under 13.  Only the custodial parent is eligible.  But that parent doesn’t have to claim the child as a dependent.  The maximum amount of the credit is $2,100 for 2+ children and $1,050 for one child.  It phases out as your income increases.

Earned Income Credit

Only the custodial parent is eligible.  But that parent doesn’t have to claim the child as a dependent.  The maximum credit is $7,430 for 3+ children, $6,604 for 2 children; $3,995 for one child and $600 for no children.  It is unavailable if your income exceeds about $50,000.

American Opportunity Education Credit

The maximum credit is $2,500 for a student child.  It’s available for the first four years of college.  It is necessary to claim the child as a dependent to be eligible.  It is not available if your adjusted gross income is $90,000 or more.

Lifetime Learning Credit

It is necessary to claim the child as a dependent to be eligible.  It’s available for an unlimited number of years.  The maximum annual credit is $2,000.  It is not available if your adjusted gross income is $90,000 or more.