Client is a divorced parent who is the Custodial parent by court decree and subsequently files as HOH. She also alternates Exemption with the other parent every other year. Can the Custodial parent claim eduction credits/benefits for a year in which she dose not have Exemption? Or, does the Non-Custodial parent have to release the Exemption to the Custodial parent (Form 8332) for those years in order for her to claim education benefits? Comments appreciated.
-
-
Custodial parent presumed to have exemption.
It is the custodial parent who must execute Form 8332 and provide it for the non-custodial parent to attach to his return. This entitles the non-custodial parent to the dependent deduction and the child tax credit, as well as access to educational tax credits and tuition & fees deduction. Only the parent claiming the deduction is eligible for education credits and the T&F deduction for amounts that he paid. If the parent who does not claim the deduction makes payments directly to the qualified institution on behalf of the student, those payments are considered paid by the student, and the parent claiming the deduction may use these amounts to figure education credits or T&F deduction. So for educational benefits, custody really isn't involved.Evan Appelman, EA -
And, for tax purposes, one is not a custodial parent by court decree but by IRS definition, basically whichever parent the child lived with the most nights during the year, if all other requirements are met.Comment
-
Good point, Lion
There's a right way, a wrong way, and the IRS way. Stick with the IRS way and we'll all stay out of trouble. But what Ray probably meant was that the divorce decree gave her custody of the child.Evan Appelman, EAComment
-
Custodial Parent
Ya gota love when one parent is the custodial parent and they just trade off claiming the child everyother year...Originally posted by appelman View PostConfucius say:
He who sits on tack is better off.Comment
Comment