The IRS 8332 form serves a specific purpose: it allows one parent to release their claim to a child's exemption, so the other parent can claim it on their taxes. This decision can have significant financial implications, especially when it comes to tax refunds and liabilities. For those looking to navigate this crucial aspect of post-divorce finance management, understanding and correctly filling out this form is key. Click the button below to get started on filling out your form.
The landscape of tax filing is often complex and nuanced, especially for those navigating the challenges of shared custody agreements. Central to this complexity is the IRS 8332 form, a document that holds significant sway over the tax benefits related to claiming a child as a dependent. The necessity of this form arises when parents who are no longer together need to determine which of them has the right to claim the child or children in question for tax purposes. Traditionally, the custodial parent, defined as the parent with whom the child spends the majority of nights during the year, would automatically qualify for this privilege. However, there are scenarios where the non-custodial parent might be granted the right to claim the child, provided that certain conditions are met. In essence, the IRS 8332 form serves as the bridge for this transfer of tax benefit, allowing the custodial parent to release the claim to the non-custodial parent. This process is not just a gesture of goodwill but a legal agreement that can affect eligibility for several tax benefits, including the child tax credit, dependency exemption, and potentially the earned income credit, all of which can have a substantial impact on one’s annual tax obligations.
Form 8332
Release/Revocation of Release of Claim
OMB No. 1545-0074
to Exemption for Child by Custodial Parent
(Rev. October 2018)
Attachment
115
Department of the Treasury
▶ Attach a separate form for each child.
Sequence No.
▶ Go to www.irs.gov/Form8332 for the latest information.
Internal Revenue Service
Name of noncustodial parent
Noncustodial parent’s
social security number (SSN) ▶
Note: This form also applies to some tax benefits, including the child tax credit, additional child tax credit, and credit for other dependents. It doesn’t apply to other tax benefits, such as the earned income credit, dependent care credit, or head of household filing status. See the instructions and Pub. 501.
Part I Release of Claim to Exemption for Current Year
I agree not to claim an exemption for
Name of child
for the tax year 20
.
Signature of custodial parent releasing claim to exemption
Custodial parent’s SSN
Date
Note: If you choose not to claim an exemption for this child for future tax years, also complete Part II.
Part II Release of Claim to Exemption for Future Years (If completed, see Noncustodial Parent on page 2.)
for the tax year(s)
(Specify. See instructions.)
Part III Revocation of Release of Claim to Exemption for Future Year(s)
I revoke the release of claim to an exemption for
Signature of custodial parent revoking the release of claim to exemption
General Instructions
What’s New
Exemption deduction suspended. The deduction for personal exemptions is suspended for tax years 2018 through 2025 by the Tax Cuts and Jobs Act. Although the exemption amount is zero, eligibility to claim an exemption may make you eligible for other tax benefits. See Pub. 501 for details. Although taxpayers can’t claim a deduction for exemptions, eligibility to claim an exemption for a child remains important for determining who may claim the child tax credit, the additional child tax credit, and the credit for other dependents, as well as other tax benefits. See the instructions and Pub. 501 for details.
Purpose of Form
If you are the custodial parent, you can use this form to do the following.
•Release a claim to exemption for your child so that the noncustodial parent can claim an exemption for the child and claim the child tax credit, the additional child tax credit, and the credit for other dependents (if applicable).
•Revoke a previous release of claim to exemption for your child.
Release of claim to exemption. Complete this form (or sign a similar statement containing the same information required by this form) and give it to the noncustodial parent. The noncustodial parent must attach this form or similar statement to his or her tax return each year the exemption is claimed. Use Part I to release a claim to the exemption for the current year. Use Part II if you choose to release a claim to exemption for any future year(s).
Note: If the decree or agreement went into effect after 1984 and before 2009, you can attach certain pages from the decree or agreement instead of Form 8332, provided that these pages are substantially similar to Form 8332. See Post-1984 and pre-2009 decree or agreement on page 2.
Revocation of release of claim to exemption. Use Part III to revoke a previous release of claim to an exemption. The revocation will be effective no earlier than the tax year following the year in which you provide the noncustodial parent with a copy of the revocation or make a reasonable effort to provide the noncustodial parent with a copy of the revocation. Therefore, if you revoked a release on Form 8332 and provided a copy of the form to the noncustodial parent in 2018, the earliest tax year the revocation
can be effective is 2019. You must attach a copy of the revocation to your tax return each year the exemption is claimed as a result of the revocation. You must also keep for your records a copy of the revocation and evidence of delivery of the notice to the noncustodial parent, or of reasonable efforts to provide actual notice.
Custodial Parent and
Noncustodial Parent
The custodial parent is generally the parent with whom the child lived for the greater number of nights during the year. The noncustodial parent is the other parent. If the child was with each parent for an equal number of nights, the custodial parent is the parent with the higher adjusted gross income. For details and an exception for a parent who works at night, see Pub. 501.
Dependent Child
A dependent is either a qualifying child or a qualifying relative. See the instructions for your tax return for the definition of these terms. Generally, a child of divorced or separated parents will be a qualifying child of the custodial parent. However, if the special rule on page 2 applies, then the child will be treated as the qualifying child or qualifying
For Paperwork Reduction Act Notice, see back of form.
Cat. No. 13910F
Form 8332 (Rev. 10-2018)
Page 2
relative of the noncustodial parent for purposes of the dependency exemption, the child tax credit, the additional child tax credit, and the credit for other dependents.
Special Rule for Children of Divorced or Separated Parents
A child is treated as a qualifying child or a qualifying relative of the noncustodial parent if all of the following apply.
1.The child received over half of his or her support for the year from one or both of the parents (see the Exception below). If you received payments under the Temporary Assistance for Needy Families (TANF) program or other public assistance program and you used the money to support the child, see Pub. 501.
2.The child was in the custody of one or both of the parents for more than half of the year.
3.Either of the following applies.
a. The custodial parent agrees not to claim an exemption for the child by signing this form or a similar statement. If the decree or agreement went into effect after 1984 and before 2009, see Post-1984 and pre-2009 decree or agreement below.
b. A pre-1985 decree of divorce or separate maintenance or written separation agreement states that the noncustodial parent can claim the child as a dependent. But the noncustodial parent must provide at least $600 for the child’s support during the year. This rule does not apply if the decree or agreement was changed after 1984 to say that the noncustodial parent cannot claim the child as a dependent.
For this rule to apply, the parents must be one of the following.
•Divorced or legally separated under a decree of divorce or separate maintenance.
•Separated under a written separation agreement.
•Living apart at all times during the last 6 months of the year.
If this rule applies, and the other dependency tests in the instructions for your tax return are also met, the noncustodial parent can claim an exemption for the child.
Exception. If the support of the child is determined under a multiple support agreement, this special rule does not apply, and this form should not be used.
Post-1984 and pre-2009 decree or agreement. If the divorce decree or separation agreement went into effect after 1984 and before 2009, the noncustodial parent can attach certain pages from the decree or agreement
instead of Form 8332, provided that these pages are substantially similar to Form 8332. To be able to do this, the decree or agreement must state all three of the following.
1.The noncustodial parent can claim the child as a dependent without regard to any condition (such as payment of support).
2.The other parent will not claim the child as a dependent.
3.The years for which the claim is released.
The noncustodial parent must attach all of the following pages from the decree or agreement.
•Cover page (include the other parent’s SSN on that page).
•The pages that include all of the information identified in (1) through (3) above.
•Signature page with the other parent’s signature and date of agreement.
The noncustodial parent must ▲! attach the required information
even if it was filed with a return in CAUTION an earlier year.
Post-2008 decree or agreement. If the divorce decree or separation agreement went into effect after 2008, the noncustodial parent can’t attach certain pages from the decree or agreement instead of Form 8332.
Specific Instructions
Custodial Parent
Part I. Complete Part I to release a claim to exemption for your child for the current tax year.
Part II. Complete Part II to release a claim to exemption for your child for one or more future years. Write the specific future year(s) or “all future years” in the space provided in Part II.
To help ensure future support, you TIP may not want to release your
claim to the exemption for the child for future years.
Part III. Complete Part III if you are revoking a previous release of claim to exemption for your child. Write the specific future year(s) or “all future years” in the space provided in Part III.
The revocation will be effective no earlier than the tax year following the year you provide the noncustodial parent with a copy of the revocation or make a reasonable effort to provide the noncustodial parent with a copy of the revocation. Also, you must attach a copy of the revocation to your tax return for each year you are claiming the exemption as a result of the revocation. You must also keep for your records a copy of the revocation and evidence of delivery of the notice to the noncustodial parent, or of reasonable efforts to provide actual notice.
Example. In 2015, you released a claim to exemption for your child on Form 8332 for the years 2016 through 2020. In 2018, you decided to revoke the previous release of exemption. If you completed Part III of Form 8332 and provided a copy of the form to the noncustodial parent in 2018, the revocation will be effective for 2019 and 2020. You must attach a copy of the revocation to your 2019 and 2020 tax returns and keep certain records as stated earlier.
Attach this form or similar statement to your tax return for each year you claim the exemption for your child. You can claim the exemption only if the other dependency tests in the instructions for your tax return are met.
If the custodial parent released his TIP or her claim to the exemption for
the child for any future year, you must attach a copy of this form or similar statement to your tax return
for each future year that you claim the exemption. Keep a copy for your records.
Note: If you are filing your return electronically, you must file Form 8332 with Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return. See Form 8453 and its instructions for more details.
Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax.
You aren’t required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by Internal Revenue Code section 6103.
The average time and expenses required to complete and file this form will vary depending on individual circumstances. For the estimated averages, see the instructions for your income tax return.
If you have suggestions for making this form simpler, we would be happy to hear from you. See the instructions for your income tax return.
Filing out the IRS Form 8332 is necessary for divorced or separated parents when one parent wants to release their claim to a child's exemption, allowing the other parent to claim it. This form is crucial during tax filing season for parents who are navigating custody arrangements and looking to maximize their potential tax benefits. The process is straightforward but requires attention to detail to ensure both the release and claiming of the exemption are handled correctly.
Once Form 8332 is properly completed and attached to the noncustodial parent's tax return, the IRS recognizes the shift in exemption claim. This step is crucial for tax compliance and maximizing potential refunds or minimizing tax liabilities. For both parents, clear communication and understanding of the form’s contents and purpose can help ease tax season stress, especially in navigating post-divorce financial changes.
IRS Form 8332 is a document specifically designed for divorced or separated parents. This form allows the custodial parent to release their right to claim a child as a dependent to the non-custodial parent for tax purposes. You'll need to use this form if you are the custodial parent and have agreed, either through a divorce decree or separately, to let the non-custodial parent claim the dependency exemption for a child.
To claim a child as a dependent, the non-custodial parent must attach a completed Form 8332 to their tax return. This form should be signed by the custodial parent, thereby releasing their right to the exemption. The non-custodial parent cannot claim the child without this signed form unless they have a different qualifying document, such as a court order.
It depends on how the form is filled out. Form 8332 offers two options:
Review and choose the option that best fits your agreement or court order.
Yes, the custodial parent can revoke a previously granted release of claim to exemption. To do this, the custodial parent must provide a written notice of revocation to the non-custodial parent for the tax year the revocation is effective. Form 8332 includes a section specifically for this purpose. The revocation becomes effective the year after it is provided, and it cannot revoke the release for any year that the non-custodial parent has already claimed the child by filing their tax return.
To complete Form 8332, you'll need the following information:
Make sure all information is accurate and complete before submitting the form with your tax return.
Filling out the IRS 8332 form can be a straightforward process, but it's quite easy to make mistakes if you're not careful. This form, critical for non-custodial parents wishing to claim a child as a dependent for tax purposes, requires attention to detail and an understanding of its instructions. Here are six common mistakes to avoid:
Not getting the custodial parent's signature: This is a critical step. The form is invalid without the signature of the custodial parent, giving permission for the non-custodial parent to claim the exemption.
Forgetting to file the form each year: Remember, you need to file Form 8332 or a similar statement for each tax year you claim the exemption. It's a common oversight to think it's a one-time requirement.
Incorrect information: Double-check the child's Social Security Number and other personal information. Mistakes here can delay processing and may lead to the IRS denying the exemption.
Filing an outdated form: The IRS updates its forms regularly. Ensure you're using the most current version to avoid having your exemption denied because of using an obsolete form.
Incomplete form: Each section of Form 8332 must be completed. Missing information can lead to unnecessary back-and-forth with the IRS, delaying the exemption process.
Not understanding the legal implications: The decision to allow a non-custodial parent to claim the dependency exemption is significant and can affect both parents' taxes. It's important to understand the legal and financial implications completely.
By being meticulous and avoiding these pitfalls, you can make sure the process of claiming a dependency exemption for your child goes smoothly. Always consult with a tax professional if you're unsure about any steps in the process. This is about ensuring that every detail is correctly addressed, for the benefit of all parties involved.
When dealing with tax filings, especially in situations involving dependents, the IRS Form 8332 plays a critical role. This form is specifically designed for parents who are divorced or separated, allowing the custodial parent to release the claim to a child's exemption, thereby enabling the non-custodial parent to claim the child as a dependent for tax purposes. Alongside this form, there are several other documents and forms that might be necessary to complete the tax filing process accurately and comply with federal tax laws.
Together, these documents ensure that individuals navigating the complexities of tax filings in unique family situations are well-equipped. Each form has its purpose and requirements, contributing to a complete and compliant tax return. Understanding and preparing the necessary forms, including the IRS Form 8332 and related documents, is crucial for smooth tax reporting and to maximize potential benefits.
IRS Form 1040: This form is the U.S. individual income tax return, and it is related to Form 8332 in that it is where taxpayers can specify the exemptions claimed for dependents, which connects to the release of claim to exemption for a child provided by Form 8332.
IRS Schedule EIC (Form 1040): The Schedule EIC is used to claim the Earned Income Credit, a tax benefit for working people with low to moderate income, especially those with children. Form 8332 directly impacts eligibility for claiming the child as a qualifying child for the Earned Income Credit on the Schedule EIC.
IRS Form 8862: Form 8862 is used to claim the Earned Income Credit after disallowance. The relationship to Form 8332 arises when the right to claim a child affects the taxpayer's eligibility for the Earned Income Credit, potentially necessitating the use of Form 8862 if the EIC was previously disallowed.
IRS Form 2120: Form 2120 is for multiple support declarations, allowing several taxpayers who support a dependent to decide among themselves who will claim the exemption. This form parallels Form 8332 in its function of negotiating dependency exemptions, particularly in complex family situations.
Form W-4: Employees use this form to determine the amount of federal income tax to withhold from their pay. While not directly related to dependency exemptions, the correct completion of a W-4 can be influenced by the exemptions claimed or released on Form 8332, impacting the taxpayer's withholding and potentially their tax liability or refund.
IRS Form 1040X: The Amended U.S. Individual Income Tax Return allows taxpayers to correct previously submitted Form 1040s. If a taxpayer needs to change the number of exemptions claimed due to a decision related to Form 8332, they would file Form 1040X to make such a correction.
IRS Form 8814: This form concerns the option to report a child's interest and dividends on the parent's return. While Form 8332 deals with the exemption for a dependent, Form 8814 relates to a child's income, demonstrating the breadth of tax considerations involving dependents.
IRS Form 8832: Form 8832 allows entities to choose how they are classified for federal tax purposes. Although different in its primary purpose, it shares the characteristic of opting for a particular tax treatment with Form 8332, which involves choosing which parent can claim the child as a dependent.
The IRS Form 8332 is a crucial document for noncustodial parents wishing to claim a child as a dependent for tax purposes. It involves the custodial parent releasing the right to claim the child for one or more tax years. When completing this form, attention to detail and adherence to specific guidelines are vital. Below are essential dos and don'ts to consider.
Read the instructions for Form 8332 carefully before filling it out. The IRS provides detailed guidelines to help you avoid common mistakes.
Ensure the custodial parent signs the form. The IRS requires the custodial parent's signature to validate the agreement.
Specify the tax year(s) for which the claim is released. You can release the claim for a single year, multiple years, or all future years, but you must clearly indicate your choice.
Keep a copy of the completed and signed Form 8332 for your records. You will need to attach it to your tax return when you file.
Provide detailed information about the child or children being claimed. This includes full names and Social Security numbers, ensuring there are no discrepancies with the IRS records.
Review the form for any errors before submitting it. A small mistake can lead to your claim being rejected.
Understand that Form 8332 can only be used for the purpose of releasing a claim to a child's exemption. It is not applicable for other tax benefits such as the Earned Income Credit, Child Tax Credit, and others.
Assume verbal agreements will suffice. The IRS requires the signed Form 8332 as proof of the custodial parent's consent.
Forget to specify the year or years you're releasing the claim. Vague or incomplete forms can be rejected.
Overlook the need to re-submit Form 8332 with each tax return when claiming the exemption in subsequent years. Attaching a copy each year is necessary.
Fill out the form in a hurry without checking for accuracy. Errors can delay processing and affect your tax situation.
Ignore the instructions regarding where to send the form. While it's attached to your tax return, knowing the filing specifics helps ensure compliance with IRS rules.
Disregard the potential need for legal advice. In complex custody situations or where there might be disagreements, consulting with a professional can prevent problems.
Attempt to use the form for purposes other than its intended use. Misusing IRS forms can lead to audits or penalties.
The IRS 8332 form is closely tied with tax filings, specifically regarding the claim of a child as a dependent. However, many misconceptions surround it. It's essential to clear these up for accurate tax reporting.
It's a one-time form: A common misconception is that once you fill out Form 8332, it's set for good. In reality, this form can be filled out each tax year. The custodial parent can release the claim to the non-custodial parent for one year, several years, or indefinitely, but conditions can change, requiring a new form.
Only the custodial parent needs to fill it out: While it's true that the custodial parent, defined as the parent with whom the child spends the most nights during the year, must complete the form to release a claim, the non-custodial parent must attach it to their tax return. This misconception can lead to the IRS rejecting the non-custodial parent's claim to the exemption.
It can be filed electronically: As of the current guidelines, Form 8332 must be physically attached to the non-custodial parent’s tax return if they're claiming the exemption. This means the non-custodial parent cannot file electronically if they're claiming a child dependency exemption based on Form 8332; they must mail their return to the IRS.
It’s only for claiming a dependency exemption: While the primary use of Form 8332 is indeed to release a claim to the dependency exemption, it also affects the right to claim the child tax credit, and, depending on the year, other tax benefits like the Earned Income Tax Credit (EITC) or education tax credits. Misunderstanding its scope can result in overlooking significant tax benefits.
Any verbal agreement replaces the need for Form 8332: Verbal agreements between parents about dependency exemptions don't hold up with the IRS. For the non-custodial parent to claim the exemption, a completed Form 8332 or a similar statement that conforms to its specifications must be filed. Relying on verbal agreements can result in tax benefits being denied.
The IRS 8332 form is specific to situations involving the release of a child's exemption by the custodial parent to the non-custodial parent. Understanding how to properly complete and use this form is crucial for ensuring that tax benefits are accurately distributed between parents. Below are nine key takeaways to guide you through this process.
Hcfa 487 - An updated form that healthcare providers complete to record significant changes in a patient's treatment plan.
Vs4 Form - Structured data collection for the permanent archiving of divorce or annulment in Virginia’s state records.
Free Doctor Release to Return to Work - Offers a pathway for inmates to return to productive society.