Divorced parents - automatic termination

[Gretel]

This is probably an easy question for most of you. I never dealt with this situation and need help.

If child can be claimed by non-custodial parents, when does this agreement automatically terminate?

The year child turned 18?
The year after child turned 18?
Or the year child is no student any longer?

I think it is the year the child turned 18 and after that it goes by the tie breaker rules. Is this correct?

[ChEAr$]

This is probably an easy question for most of you. I never dealt with this situation and need help.

If child can be claimed by non-custodial parents, when does this agreement automatically terminate?

The year child turned 18?
The year after child turned 18?
Or the year child is no student any longer?

I think it is the year the child turned 18 and after that it goes by the tie breaker rules. Is this correct?

Don't think I've ever seen anything in writing, but seem to remember previous discussions elsewhere to the effect that the cutoff age is "age of majority" in the state of residence.

[gkaiseril]

Since the IRS now wants the Form 8332 and not the divorce decree, it depends upon how the form is prepared, that is all future years, and if the released child still meets all the requirements for a QDC for the year the tax return is being filed.

[taxea]

I read this as you referring to the agreement ending. As of this year an 8332 is required from the custodial parent regardless of any prior agreement. The ages for taking a dependent are under 19 unless in college in which case it is under 24.
I would not take the child for the non custodial parent without the 8332.

[taxmom34]

is it in fact regardless of any prior agreement? rules don't generally change that drastically. i would think if divorce was granted years ago and dependent status established at that time, it would still hold.

[Lion]

Minor Child

The divorce decree applies to MINOR children. Tax laws determine dependency for tax purposes. If a 20 year old college kid lives with mom, no matter how much dad pays for child's college, room & board, cell phone, gasoline, etc., he still cannot claim the child. Of course, he couldn't a few years earlier either if mom didn't sign 8332,

[Earl]

Age of Majority

See Tax Court ruling.

Tax Court agreed with IRS on denying the dependency exemption for Brandi. The court case write up does not mention whether a Form 8332 was signed by Mr. Boltinghouse’s ex-wife, however Tax Court clearly stated the special rules for children of divorced parents does not apply here. Brandi had turned 18, the age of majority in Virginia, during March 2003 and was therefore not in the legal custody of either parent for more than ½ of the year. Since neither parent had legal custody for more than ½ of the year, the special rules were not applicable.

This left Mr. Boltinghouse having to show the total cost of Barndi’s support for the year 2003 and that he provided more than 50% of the total. Although the total amount does not have to be precise, it must be convincing enough to show Mr. Boltinghouse provided over 50% of the total. Since Mr. Boltinghouse did not provide the total amount spent for Brandi’s support for 2003, he was unable to prove he had spent over 50% of Brandi’s support.

The issue of a dependency exemption for a child reaching the age of majority was also discussed in other cases including Ferguson (TC Memo 1994-114) and Kaechele (TC Memo 1992-457).

Michael K Boltinghouse, TC Memo 2007-324

[gkaiseril]

is it in fact regardless of any prior agreement? rules don't generally change that drastically. i would think if divorce was granted years ago and dependent status established at that time, it would still hold.

Because local judges have written such crazy rules and the divorce decrees do not provide enough data to properly identify the children, the IRS has taken the stand for going forward to require form 8322 to be filed.

Even after the age of majority if the individual is still dependent upon the parent and the divorce decree explains who will claim the exemption would still apply. Although someone might need to hire an attorney to make it work.

[Earl]

Age of Majority

Once child reaches age of majority for state of residence it does not matter what the divorce decree states. The child can only be taken by the parent who meets all the qualifications for dependency primarily if the child lives with parent over 6 months of year. There is no way for any other person to claim the child if the child is not a member of their household over 6 months of year.

The divorce decree cannot trump IRS regulations.

[Jesse]

Doesn't answer your question Gretel, but just wanted to point out the Form 8332 is not required in all cases as of this year.

http://www.irs.gov/formspubs/article...207333,00.html

New Rules for Children of Divorced or Separated Parents

Post-1984 decree or agreement. If the divorce decree or separation agreement went into effect after 1984 and before 2009, the noncustodial parent can still attach certain pages from the decree or agreement instead of Form 8332 provided that these pages are substantially similar to Form 8332. For any decree or agreement executed after 2008, the noncustodial parent must attach Form 8332 or a similar statement signed by the custodial parent and whose only purpose is to release a claim to exemption.

[Gretel]

Thanks to all. It kind of confirms my thinking even though there is no agreement between the posters. The child in question turned 18 in March of last year and didn't live with taxpayer for one day. So, he is out of luck even though he might have contributed over half of support. Since this doesn't count any longer for being able to claim a child the rule who the child lived with for most of the time will trump.

Jesse, this link is very helpful. I thought there is NO exception to the 8332 rule.