๐๐This is for MY FATHERS who pay child support faithfully but never get to carry their child.... ๐ฅ๐ซ๐ Generally, in order for someone to claim a child as a dependent on their taxes, a parent must provide at least 50% of the childs financial support during the tax year. For couples who are still married and living together, claiming kids as dependents is usually a slam-dunk. Things get complicated, however, when parents divorce or separate. Now, only one parent can claim the dependent exemption. (The IRS will come down hard if both try to claim it; they cross-reference dependents Social Security numbers to make sure taxpayers arent doing this.) Special Rule for Parents Living Apart If parents lived apart at all times during the last six months of the calendar year, or if they have a written divorce decree, maintenance agreement, or separation agreement, there is a special rule that applies to the dependent exemption. Under these circumstances, if the child received more than half of his or her total support for the year from one or both parents (the rest can be paid by other relatives or public benefits) and was in the custody of one or both parents during the year, the IRS rules assume that the custodial parent (defined as the parent who had custody of the child for the greater part of the year) should get the exemption for the dependent. However, the parties may change this presumption and allocate the exemption to the noncustodial parent if either of the following are true: The divorce decree or separation agreement contains a provision in which the custodial parent waives the right to claim the dependent exemption. (The rules are slightly different if the agreement was entered into prior to 1985; the noncustodial parent must also provide at least $600 of support to receive the exemption.) The custodial parent signs a declaration (using IRS Form 8332) relinquishing the right to claim the dependent exemption, and the noncustodial parent attaches this declaration to that years tax return. Using this form, the custodial parent can relinquish the exemption for one year, a number of years, or forever, depending on what the parties agree to. If you relinquish the exemption, you are also relinquishing eligibility for the child tax credit.
Posted on: Fri, 02 Jan 2015 19:29:10 +0000
Trending Topics
Recently Viewed Topics
© 2015