Know the Rules Before Claiming a Dependent
If you are a parent who is divorced or separated, the rules for determining which one of you can claim the children as dependents is confusing at best.
The IRS makes the assumption that the custodial parent is entitled to the dependency deduction — period. The only exception is when the custodial parent releases the claim by signing Form 8332, Release of Claim to Exemption for Child of Divorced or Separated Parents, or by signing a similar statement.
If the IRS-provided form is not used, the similar statement must contain the same information — the name of the child(ren), the tax year to which it applies, and the name and social security number of the parent releasing the claim.
The IRS will not accept pages of the divorce decree that state that the noncustodial parent is entitled to the dependency exemption as satisfaction of the waiver requirement.
In the event the custodial parent refuses to sign the waiver and claims the children, the noncustodial parent cannot claim the same children. If both parents claim the same children, the IRS will promptly send a notice stating there has been an error.
Each parent's refund will be adjusted to reflect the denial of the dependency exemptions until the matter is settled. If the custodial parent still refuses to release the claim to the other, the only recourse is to go back to the judge that issued the original divorce decree and have the ruling enforced.
Until that is done, the IRS will award the dependency exemptions to the custodial parent provided that parent can prove the children lived in his or her home for more than one-half the year.
Source and the entire article can be found at postcrescent.com
