If you`re a divorced or separated parent, you may have questions about how to handle the child tax credit. In general, the parent who has custody of the child for more than half the year can claim the child tax credit. However, in some cases, parents may come to an agreement to share the credit or alternate claiming it.

It`s important to have a clear and legally binding custody agreement in place to avoid any confusion or potential disputes over the child tax credit. Here are some things to consider when drafting a custody agreement that includes the child tax credit:

1. Determine who will claim the credit: As mentioned, the parent with primary custody of the child for more than half the year is typically the one who can claim the child tax credit. However, if both parents share custody equally, you may choose to alternate claiming the credit each year or agree to split it.

2. Specify how the credit will be split: If you decide to split the credit, you`ll need to determine how much each parent will receive. This could be an even split or based on the percentage of support each parent provides.

3. Include a provision for changes in custody: If custody arrangements change, it`s important to have a provision in the agreement that addresses how the child tax credit will be handled. For example, if one parent gains primary custody, they would then be entitled to claim the credit.

4. Consult with a tax professional: It`s always a good idea to consult with a tax professional to ensure that your custody agreement complies with IRS guidelines and that you`re taking advantage of all available tax credits and deductions.

Remember, the child tax credit is just one aspect of a custody agreement. It`s important to have a comprehensive agreement in place that covers all aspects of custody and visitation to ensure that both parents and the child are protected. If you need help drafting a custody agreement, consult with a family law attorney.