Form 8332 for 18 yr old

[Jesse]

If a child turned 18 in May of 2007 can the custodial parent elect to let the noncustodial parent take the exemption?

Dad paid child support thru May, Child graduated in May and went to college in Sept 2007.

This was discussed in another thread but I'm still unclear.

[travis bickle]

i cannot see why not

If a child turned 18 in May of 2007 can the custodial parent elect to let the noncustodial parent take the exemption?

Dad paid child support thru May, Child graduated in May and went to college in Sept 2007.

This was discussed in another thread but I'm still unclear.

if the mom does not claim the child, she is merely signing the 8332 to allow the father to do so. the information below is quoted from irs notice 2008-5 which, as we all know, "clarified" for us the definitions of "qualifying child" and "qualifying relative"

"Section 152(c)(1) defines a “qualifying child” of a taxpayer as an individual who: (A) bears a certain relationship to the taxpayer, (B) has the same principal place of abode as the taxpayer for more than one-half of the taxable year, (C) meets certain age requirements, and (D) has not provided over one-half of his or her own support for the calendar year.

"Section 152(d)(1) provides, in part, that to be a “qualifying relative” of a taxpayer, an individual must: (A) bear a certain relationship to the taxpayer, (B) have gross income for the calendar year that is less than the exemption amount (as defined in section 151(d)), and (C) derive over one-half of his or her support for the calendar year from the taxpayer. In addition, section 152(d)(1)(D) requires that the individual not be a qualifying child of the taxpayer or of “any other taxpayer” for the taxable year. Section 152(d)(2)(H) provides that a qualifying relative may include an individual who has the same principal place of abode as the taxpayer and who is a member of the taxpayer’s household."

so, the common item to both of the above is . . . did the taxpayer provide over 1/2 of the support of the child during the year?

does this help?

[Jesse]

Does the child being age 18(now a legal adult although a full time student) make a difference?

For many years Dad has just brought me the form 8332 and I have taken the dependency deduction on his return. There was discussion on a different thread because the child has turned legal age the custodial parent can no longer "give" the dependency deduction to the noncustodial parent. Or would I not have to worry until child is 19 or older - a full year w/out child support?

[travis bickle]

i do not see any problem due to age

Does the child being age 18(now a legal adult although a full time student) make a difference?

For many years Dad has just brought me the form 8332 and I have taken the dependency deduction on his return. There was discussion on a different thread because the child has turned legal age the custodial parent can no longer "give" the dependency deduction to the noncustodial parent. Or would I not have to worry until child is 19 or older - a full year w/out child support?

after all, SOMEONE should be claiming this individual's exemption - either him/herself, the mom or the dad.

i have never come across anything concerning divorced parents wherein the irs states "once the 'child' hits 18, form 8332 is disallowed."

again, if the taxpayer meets all the "bells" [1/2 of support for 'child', relationship, etc.] then the taxpayer has satisfied all the irs tests.

what is VERY important however, is now that the 'child' is in college, what is/are the source/s of funding? if the child [NOT the taxpayer] took out a loan for college, that amount is a portion of the 'child's' income and therefore the parent may be in a situation where he no longer supplies more than 1/2 of the income for the child = no longer a dependent. this might very well be the case for a non-custodial parent since they normally would not be around to sign student loan documents.

hope this helps.

[dtlee]

If a child turned 18 in May of 2007 can the custodial parent elect to let the noncustodial parent take the exemption?

Dad paid child support thru May, Child graduated in May and went to college in Sept 2007.

This was discussed in another thread but I'm still unclear.

I would say it depends on the laws of your state. This comes from my reading of TC Memo 2007-324 which states the following (among a lot of other issues):

Petitioner also does not qualify for the deduction under the special support test for children of divorced parents. Sec. 152(e)(1). Section 152(e)(1) applies only when the child is in the custody of one or both parents for more than one-half of the calendar year. We have held that once a child reaches the age of majority under State law, she is no longer in the custody of either parent for purposes of section 152(e). Ferguson v. Commissioner, T.C. Memo. 1994-114 [1994 RIA TC Memo ¶94,114]; Kaechele v. Commissioner, T.C. Memo. 1992-457 [1992 RIA TC Memo ¶92,457]. Petitioner's daughter was a resident of Virginia in 2003, and under Virginia law an individual reaches the age of majority when she becomes 18 years of age. Va. Code Ann. sec. 1-204 (2005). Petitioner's daughter became 18 years of age in March 2003, and therefore could not be in the custody of either parent for more than one-half of the calendar year

To me, it is basically saying that once a child has been of majority age under local law for more than half the year, the concept of custody disappears and the rules for Divorced/Separated spouses no longer applies. That would mean that if the child lived more than half the year with one parent, the child is that parent's Qualifying Child. In other words, if the Divorced/Separated spouse rules do not apply and the child is living with the mother, the noncustodial father has no legal right to claiming the dependent.

If the child reached emancipation age in May, according to my reading of the TC Memo, the child was not in anyone's "custody" for more than half the year and the rules for divorced or separated parents no longer apply.

I would contend that the rules then revert to the QC/QR rules and if the child's home is with the mother and the child was away at school for a temporary absence and planning to return to the same home, then only the mother (or someone else in that home with the appropriate relationship to the child) can treat the child as a Qualifying Child.

[Jesse]

If the child reached emancipation age in May, according to my reading of the TC Memo, the child was not in anyone's "custody" for more than half the year and the rules for divorced or separated parents no longer apply.

I would contend that the rules then revert to the QC/QR rules and if the child's home is with the mother and the child was away at school for a temporary absence and planning to return to the same home, then only the mother (or someone else in that home with the appropriate relationship to the child) can treat the child as a Qualifying Child.

This is what I'm afraid of - I'll read more later but I thank you for your responses.