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Release of Dependency Exemptions

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    Release of Dependency Exemptions

    Taxpayer lives with her three children and is divorced. She only worked a part time job and received some unemployment last year – total income less than $8,000. Ex-husband pays child support and has requested she allow him to take exemption for one of the children. Since she made so little, she does not need the exemptions or child tax credit for any of the kids. She would still get EIC for having two QC. Do you see any pitfalls if she would sign over the exemption for all the kids to the ex-husband for 2005?

    By the way, both federal and state refunds are the same with or without the kids.

    #2
    Let him take all 3...

    Kids would still qualify taxpayer for HOH & EIC, regardless if she claimed them or not. So, even if she signs the 8332 over to ex-hubby for all 3 kids, she would be fine.

    Bill

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