When people are involved in child custody cases in Illinois, there are some important things that they should know about how it might affect their taxes. Child custody may affect the dependency exemptions and the available credits that people can claim on their income tax forms.
Parents may receive several tax benefits when they claim their children as dependents. They may receive the dependency exemption, the child tax credit, the earned income credit, and the credit for child care expenses, and they may be able to claim head of the household status. All of these benefits can save people thousands of dollars on their taxes or lead to larger refunds.