Wednesday's tax tip Vol. 18 - Exemptions for the Divorced

If you are or anticipate being divorce in the near future, who claims the dependents on their respective tax returns?

The IRS specifically permits the custodial parent to claim any dependents for their returns regardless of child support or other agreements between the parties.

The only way the IRS permits any noncustodial parent from claiming the dependent(s) is through use of the form 8332 to be completed by the custodial parent. This form essentially grants the non custodial parent to claim an exemption.

Please keep in mind that this form is to be completed regardless of any agreement in a divorce decree. The IRS would tell you they are not in the business of reviewing and determining dependent exemptions for hundred of thousands of decree agreements, some of which can be very detailed.

When and if you are in a position to negotiate the claiming of dependents on your returns, make sure your attorney includes this form as part of your decree documents.