Can a divorced couple each claim one child and make family HSA deduction?

In the scenario of a divorced couple each having custody of one child, they may wonder if they can make a family HSA deduction. This situation can be complex, but it is possible for both divorced parents to each claim one child and still make a family HSA deduction. Here’s what you need to know:

When it comes to Health Savings Accounts (HSAs), the IRS considers the custodial parent to have the right to claim the child as a dependent for tax purposes. The custodial parent is the one with whom the child lived for the greater part of the year. In cases where the children live with each parent an equal amount of time, the IRS may look to other factors to determine the custodial parent.

However, divorced parents can agree to alternate years for claiming their children as dependents for tax purposes. If this is the case, the non-custodial parent can still make a family HSA deduction if they claim the child for that tax year. It’s important to note that both parents cannot claim the same child for the same tax year in order to make a family HSA deduction.

Ultimately, the key factor in determining whether a divorced couple can make a family HSA deduction is which parent is claiming each child as a dependent for that tax year. As long as each child is being claimed by a different parent, and both parents meet the HSA eligibility requirements, they should be able to make a family HSA deduction.

In situations where a divorced couple shares custody of their children, the matter of making family HSA deductions can certainly raise questions. Each parent can indeed claim one child as a dependent, which allows them to benefit from HSA deductions, provided certain conditions are met.