FORM 8332( RELEASE/REVOCATION OF CLAIM TO EXEMPTION FOR CHILD BY CUSTODIAL PARENT)

 

HOW A CUSTODIAL PARENT CAN RELEASE THE RIGHT TO CLAIM YOUR CHILD AS DEPENDENT TO THE NON-CUSTODIAL PARENT?

 

The answer is “form 8332”

 

Ø What is form 8332?

It is used to release the right to claim your child as a dependent to the noncustodial parent. This form is often used when the non-custodial parent has been granted the right to claim the child as a dependent by a divorce or separation agreement, or by a court order. The information required for the same is:

·       your child's name,

·       the tax year,

·       your Social Security number,

·       your signature and date.

·       If you prefer to release your claim for more than one tax year, enter the same information in part two rather than part one. You also use the form to revoke a previous release of an exemption claim.

 

Once complete, the form is handed over to child's noncustodial parent. They will file it with their tax return. If you release your claim for multiple tax years, you only need to fill out the form once: the other parent will attach copies of the original to their return each year.

Ø  WHAT ARE REQUIREMENTS FOR FORM 8332?

These requirements include:

·       The child must be a qualifying child or qualifying relative, as defined by the IRS.

·       The non-custodial parent must have been granted the right to claim the child as a dependent by a divorce or separation agreement or by a court order.

·       The custodial parent must sign Form 8332 and provide it to the non-custodial parent.

·       There must be a written agreement with the noncustodial parent stating that you will release your claim to the dependency exemption.

·       The agreement must be in writing and must specify the tax year or years for which the noncustodial parent can claim the dependency exemption.

 

Ø  WHAT BENEFITS DOES A NON-CUSTODIAL PARENT GET AFTER RECEIVING FORM 8332 ?

 

·       It allows the non-custodial parent to claim the child-related tax credits and deductions, which can significantly reduce their tax liability.

·       non-custodial parent eligible for certain other tax benefits, such as the Earned Income Tax Credit.

·       Using form 8332 can help prevent disputes between parents about the dependency exemption and reduce the risk of an audit by the IRS

 

Compiled by:

Ca. Harsimran kaur