New twist on Qualifying Child

[jainen]

I don't think we've mentioned this issue yet.

The new Qualifying Child rules have replaced the support test with a residence test, so it doesn't matter who is paying the bills as long as the child lives with you at least six months. Only exception is if the child pays more than 50% of her own support. Children on welfare or living with and supported by rich grandparents can still be the parent's qualifying child.

That's not the case with releasing the exemption to the non-custodial parent with Form 8332. In order to do that, one or both of the parents must provide more than half the support. We'll need to remember that if the children receive welfare or support from grandparents or somebody else.

[Bill Tubbs]

Sure enough...

That's not the case with releasing the exemption to the non-custodial parent with Form 8332. In order to do that, one or both of the parents must provide more than half the support. We'll need to remember that if the children receive welfare or support from grandparents or somebody else.

Thanks for pointing that out. Just a little clarification, from 152(e)(1)(A):
"a child receives over one-half of the child's support during the calendar year from the child's parents"

So, each mother could provide 30% and father 22% and still use Form 8332, as the total support provided by the parents (52%) is > 1/2 of the child's support.

Bill

[Unregistered]

I actually made this point in an earlier post where someone was trying to use the divorce laws to justify some bizarre interpretation of the tax law.