The choice of calling the children either a deduction or an exemption seems to change from year to year depending on what the IRS code says that year. Currently, we’re using the term exemptions. In the past, we’ve used the term deductions. The key to who gets to take the children as an exemption or a deduction can be determined by the contract you sign. It also can be determined by a judge. However, if it’s not in the contract that you sign and a judge has not made the determination, then it’s governed by the Internal Revenue Service rules and regulations, and those rules and regulations says that the person who has the child principally residing with them more than 50% of the time has the right to claim that child as an exemption or a deduction.