Swapping dependents

[skhyatt]

Want to make sure this is allowed. I don't see anywhere where it isn't, but please correct me if I'm wrong.

TP and ex husband have it in their divorce agreement as to who will be allowed to claim their son and daughter as dependents. TP claims daughter and ex claims son. This year, the ex husband apparently already has filed his taxes and claimed the daughter without telling TP mom. He did this because the son is no longer eligible to be a qualifying child for dependent care benefits. TP mom has no problem with this and is willing to switch. Is there anything that prohibits this?

[veritas]

I have a problem

when people treat their kids like they are trading carbon credits.


I assume you are representing the mother. If she doesn't care I guess I wouldn't either.

[skhyatt]

Yes, the Mother. I agree, it's not good to see kids treated in this way. Unfortunately, I am somewhat familiar with the ex, through the Mother of course. He is quite a head case.

[S T]

Custodial or Non Custodial

You didn't mention who was custodial or non custodial parent.

Do you need form 8332? Doesn't seem from your post that the divorce agreement states the swapping of dependents, and meets post 1984 requirements in lieu of the form 8332.

Sandy

[skhyatt]

I believe they have a joint custody agreement.

[veritas]

Sandy

is correct if your client did not have physical custody of the son more than half the year.

I assumed she did.

[skhyatt]

If the parents have joint custody and say they have the kids 50-50, then technically, neither should get the deduction? In TTB, page 3-16, one example talks about child living about 50% with each parent. Indicates that the dependency exemption goes to the one who can prove over 50% custody. If each has equal, then it goes to the one with the higher AGI. In the far left column, the example says the court decree is silent, but in this case, the court decree says each parent can claim one child.

Another thought here is, if neither parent has a qualifying child due to the "not living with the TP over half the year", then could the kids qualify as "Qualifying Relatives"??

[newbie]

when people treat their kids like they are trading carbon credits.


I assume you are representing the mother. If she doesn't care I guess I wouldn't either.

I'd rather have consentual carbon credits than the bickering back and forth and race to file first so I can efile b4 the other one.

Probably a dumb question, but as far as the 50/50 conflict and exemption going to the spouse with the higher AGI, do you look at the actual tax returns if one spouse is remarried or just the actual parents AGI and not the step parents? I'm assuming they consider both incomes.

[solomon]

I believe they have a joint custody agreement.

From Prop. Reg. 149856-03

"Sections 151 and 152, not state law,
determine whether a divorced or
separated parent may claim an
exemption for a child for Federal
income tax purposes. A state court order
or decree does not operate to allocate
the federal exemption between parents."

[ChEAr$]

Kids swap

sounds like a good title for a new Hollywood type television show.

Like.. kids get a new mother. new wife for husband... new problems all around.