As the month of January progresses, many people are left with an understanding of receiving a tax refund. However, what many people fail to consider is the benefit from claiming a child on taxes.
Under New Mexico law, the courts look at the allocation of the child for tax purposes as a form of child support. This can be used for those who wish to decrease their support obligation and can be used for those who want to get more in support. This often overlooked tax issue is one in which both parties can create a win/win situation.
While the IRS regulations are clear that the parent who has the child most of the time should claim the child for tax purposes, further interpretation leaves it to the states to award the tax benefit through court. This means that many people leave money on the table instead of assessing the pros and cons of further consideration of the tax benefit. New Mexico law allows the courts to allocate the tax benefit which is then upheld by the IRS. However, be aware of the fact that magic language needs to appear in your order so you can make this allocation proper and legal.
If you would like more information on how you can use the tax benefit regarding your child(ren) then contact us at info@JusticeLegalGroup.com or call us at 505-880-8737.