MN SF848

Courts may allocate federal income tax dependency exemptions for children in child support matters and require the custodial parent (with more than half calendar year custody) to release the exemption claim to the other parent.

Courts must consider the financial resources of each party, impact on ability to provide for child's needs, which party would receive a tax benefit, and effects on premium tax credits or subsidies under the Affordable Care Act when making allocation decisions.

Courts may impose conditions on exemption claims, including requirements for child support compliance, and parties with less than 10 percent parenting time cannot receive exemptions except by mutual agreement.

Courts may modify prior allocations upon substantial change in circumstances and must make written findings if allocation is contested.

A party who wrongfully claims an exemption in violation of a court order must compensate the other party for lost benefits, costs, and reasonable attorney fees; claims for relief must be filed within three years of the tax return filing date.