Custody of 18+ year old

[dtlee]

I agree with Solomon that the Kiddie Tax applies toa child with living parents who meets the age and income requirements of the Kiddie Tax in 2008.

I think the distinction that is amiss is that the rules for the Kiddie Tax when it is applied to a child of divorced or separated child say that the tax return of the custodial parent must be used to compute the Kiddie Tax.

[dtlee]

Just to add a little more on what I posted....

As stated in the regulations Section 152(e) do not apply when a child reaches majority age. Contrast that with this from Code Section 1(g)(5)(A) which discusses which parent to use for computing the Kiddie Tax and says we should use:

in the case of parents who are not married (within the meaning of section 7703 ), the custodial parent (within the meaning of section 152(e) ) of the child,

[Bees Knees]

Here is another twist.

The “custodial parent” is now defined as “the parent with whom the child resides with for the greater number of nights during the calendar year”.

What about 17 year old cutie pie who sneaks out of the house at night to party with her friends. Did she reside with mom or dad that night?

[solomon]

Here is another twist.



What about 17 year old cutie pie who sneaks out of the house at night to party with her friends. Did she reside with mom or dad that night?

Probably the one with whom she was supposed to reside.

From Reg. 1.152-4

3) Absences. (i) Except as provided in paragraph (d)(3)(ii) of this section, for purposes of this paragraph (d), a child who does not reside (within the meaning of paragraph (d)(1) of this section) with a parent for a night is treated as residing with the parent with whom the child would have resided for the night but for the absence.

(ii) A child who does not reside (within the meaning of paragraph (d)(1) of this section) with a parent for a night is treated as not residing with either parent for that night if it cannot be determined with which parent the child would have resided or if the child would not have resided with either parent for the night.

[Kram BergGold]

One more thought

So it seems the custodial parent always gets the exemption for a emancipated child except if you say the child spent equal time in both parents houses and the non custodial parent provided more than 50% of support, thus using the qualifying relative rules to get the exemption.

[Lion]

College

And, nights spent on a college campus? How do they work with this counting the nights math? Does it matter which parent paid for the dorm?

[solomon]

And, nights spent on a college campus? How do they work with this counting the nights math? Does it matter which parent paid for the dorm?

If in college, the child is probably of majority age so 152(e) does not apply - probably 152(c).

[dtlee]

Just to resurrect this thread since we are getting closer to the time when it might matter.....

Assuming that a child of divorced parents is of majority age for most of the year and thus, is not considered to be in anyone's "custody," how are we interpreting the direction that we must use the "custodial' parent's tax return to determine the Kiddie Tax?

Despite the lack of a custodial parent, do you plan to use the tax return of the parent with whom the child lived most of the year? What if the child set up a separate domicile and did not live with either parent? Would you then use the parent with the higher income?

What basis would you use for choosing the parent you have decided to use?

[erchess]

My Two Cents

I would use the return of the parent who was supporting the child financially and if the child were self supporting I would not do kiddie tax. If both parents were equally supporting the child I would use the return of the higher income parent. But I admit that this thread has my poor head spinning like a top.