Taxpayers are separated parents, and they have never been married and do not live together. Their daughter is living with her mother. Father wants to claim daughter for the dependency exemption and the child tax credit. My understanding is a Form 8332 has to be filed with his tax return for tax year 2016. I also understand the child has to have received over half of her support during the tax year from her parents. She receives some social security income each year. How is this social security income treated in this situation in relation to the support test?
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Do not count Soc. Sec. -
Social Security paid to the child is treated as the child's money. So if that money was spent on support, it is treated as the child paying for her own support.
Just remember it is not just the income that is added for support, but what is spent for support. In other words, if all of the Social Security went into a Savings Account, the child did not pay for any of her own support from that money.Comment
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Parental release
I thought Form 8332 was an issue for release of exemption by a custodial parent ??
It would appear from the OP that the grandmother could be in line for the personal exemption for the child and/or HOH ??
FEComment
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Clarity
If TaxSleuth would clear a few things up the answers would be better . . .
1) you say "the Father wants to claim the child" . . . . . which Father - the child's father or the daughter's father?
2) you say "she receives SS income each year" . . . . . which "she" - the child or the daughter?
I feel we might be shooting at different targets . .Comment
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After learning a valuable lesson in an earlier year I make sure in a situation where a child is being "claimed" by more than one parent or guardian to document their answers and go through the requirements of Form 888HDEP.Originally posted by mactoolsix View Post
I even had to count the nights where the child slept to figure out where the child actually lived for more than half the year because each parent will say they got joint custody and the child spent equal time.
Again charge for the extra time you will spend sorting this out!Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDRComment
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Clarification
There are only three characters in the situation that I was originally describing. There are two parents who were never married and their daughter, who happens to be a child under the age of 17. I was using the words daughter and child interchangeably.Comment
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