dependency

[patavid]

Thanks for your help with a simple situation. Client lives solely with her three chidren and claims her parents "pay most of the bills " to support her and the kids ( i.e > 50%).
Can her parents claim any or all of the kids as dependents? I assume because the kids did not live with the parents at all, the simple answer is no.

[Dusty2004]

Questions

Thanks for your help with a simple situation. Client lives solely with her three chidren and claims her parents "pay most of the bills " to support her and the kids ( i.e > 50%).
Can her parents claim any or all of the kids as dependents? I assume because the kids did not live with the parents at all, the simple answer is no.

Did your client have anyone else living with her during the year?

Did your client have any income?

Dusty

[Burke]

Review the chart on TTB page 3-15. Is the custodial parent of these children required to file a tax return, other than to obtain a refund? In other words, has no tax liability? If that is the case, they may be the qualifying relatives of the grandparents, and they do not have to be a member of the household, but the grandparents do have to provide more than 50% of their support. Is this a divorce situation where child support may be involved? If grandchildren cannot be determined to meet the qualifying-relative test, then the grandparents' support is considered a gift to their child which is then used for the grandchildrens' support, and the mother claims.

[taxea]

Do you do the parents' returns? I recommend client sign F8332 for the parents to take the kids.

[Burke]

Exemptions cannot be passed around just by signing Form 8332. If they are eligible dependents, they can be claimed by the proper qualifying party. If they are not, 8332 does not make them so. Form 8332 is for custodial & non-custodial parents' allocation, not other parties.

[taxea]

Exemptions cannot be passed around just by signing Form 8332. If they are eligible dependents, they can be claimed by the proper qualifying party. If they are not, 8332 does not make them so. Form 8332 is for custodial & non-custodial parents' allocation, not other parties.

I guess for those who don't realize it I should have added, if the parents qualify under the rules

[Jesse]

I guess for those who don't realize it I should have added, if the parents qualify under the rules

So you are saying that the parents could qualify as the noncustodial parents, in what situation would that ever happen?