@SingleDad wrote:
After the custodial parent signs the F-8332, then what do I do? Do I just file that in my tax returns to get the tax-credit? Or do I have to change my W-4 as well?
Sorry, a complete stranger to these forms and tax credit.
I think this is getting very confused.
If you are the non-custodial parent, and you know that the custodial parent will be giving you a form 8332 allowing you to claim the child as a dependent, then you would expect up to an additional $2000 child tax credit compared to your tax situation last year. If you don't adjust your W-4, that $2000 would be added to your regular tax refund. You are not required to file a new W-4, but you could, if you want to reduce your withholding so you get that money spread out in your paychecks rather than as lump sum at the end of the year.
To actually claim the credit, you file your tax return and list the child as your dependent. Your W-4 does not have to match your tax return, your W-4 only goes to your employer to set your tax withholding.
Remember that the tax credit only applies to years when you can claim the child using the form. If you will be alternating years or something, you would have to change your back and forth W-4 every year, otherwise you could be under-withheld and pay a penalty in the years you don't have the child tax credit.
