TheTaxBook

[JG EA]

I really really like TTB so take this in the spirit is is offered. Or in the spirit I overlooked something which is actually more likely.

On page 3-15 it says Post-1984 divorces can put the decree on the return to claim the dependent for the noncustodial parent. On page 1-24 it says this was overthrown and only an 8332 will work.

I know this law was a little old (end of last year) and so why isn't in the information on page 3-15. I'm just asking because I have a client that thinks it's OK and I want to be definite.

I do really like TTB. I just need things spelled out or whew it's brain cloud time. (Think of gesture Joe Banks makes in Joe vs. the Volanco when describing his brain cloud.)
JG

[Brad Imsdahl]

Page 1-24 says: “Under the Working Families Tax Relief Act of 2004, a provision in the code allowed a noncustodial parent to treat his or her child as a qualifying child or qualifying relative if among other requirements, a decree of divorce or separate maintenance or written separation agreement between the parents provided that the noncustodial parent could claim the child as a dependent. Section 152(e)(2) has been amended to delete this provision.”

In other words, all the divorce decree had to do is say the noncustodial parent gets the exemption. The noncustodial parent did not have to get the custodial parent to sign anything.

That is dramatically different than what is said on page 3-15. You either have to use Form 8332, OR the divorce decree has to contain all of the identical features found on the Form 8332 (the five bulleted points under the paragraph on page 3-15). One of the bulleted points says “a signature page with the other parent’s signature and date of agreement.” It essentially means the divorce decree can only work if it is written in a way that makes it identical to a Form 8332. The law enacted under the Working Families Tax Relief Act of 2004 had no such requirements.

[JG EA]

So,

You can use a divorce decree. Thanks for explaining that.
JG

[Brad Imsdahl]

You can use a divorce decree IF it is identical to an 8332. That rule has always been there. I've yet to see a divorce decree that is, however.

The only thing that the 2004 act did, that was later repealed, was allow the way divorce decrees normally look to work.

[TMI Moderator]

A common issue that will disqualify a divorce decree from substituting for an 8332 is that most have wording such as "Ex can take the dependency exemption if he keeps current on child support payments."

That disqualifies the decree. The release must be unconditional. That's seldom the case with divorce decrees.

[jainen]

universal problem

>>The release must be unconditional<<

Another almost universal problem with divorce decrees is that, although it may say one spouse can claim the exemption, it doesn't say the other spouse will NOT claim the exemption.

[JG EA]

Subject discussed

I know this subject was discussed before, but I never paid proper attention - you replies Brad, Paul, and Jainen have made it very clear. Thank you!