Divorcing with adult student children - can I claim on taxes?

[Doug83]

• @Bsch4477 So we all lived together up until a week or so ago. Since her new place has more rooms than mine, the adult kids who both work full-time and attend school full-time opted to stay with her while they are in school. Sleeping in the home and having one single mailing address is essentially the extent of their presence in that residence, and she receives rent assistance for/from them both for staying there - basically like her having two adult roommates who happen to be our kids. They're even on the lease. So, I'm gathering from your response that none of this matters and that the fact they are in same residence means the IRS views her as the Custodial parent and that only she has ability to claim them both as dependents?? If so, wow, something really seems extremely wrong with this rule. We are totally ammicable, so curious if the IRS will somehow allow her to grant me the rights to claim them knowing what she and I both know?

By the way, another thing to mention is that both adult children do plan to live with me at different times throughout the year. Switching off various weeks and months. 

Either adult child would have no issue staying with me from now through end of year and even in 2022. Her place is just bigger and I'm rarely home so they opted for that address.

Appreciate your advice!!

Thank you,

Doug

[Bsch4477]

Yes. If they live more nights with her and if they do not provide more than half of their own support she gets to claim them. She can allow you to claim them as dependents by giving you a signed form 8332 in which case you can get the child tax credit. But she would still get EIC and be able to file as Head of Household. You would still have to file as single. But you could claim any education credit if otherwise qualified. 

[Mike9241]

there is another thing that comes into play and that is the divorce decree. there is often a conflict between the divorce decree and the tax laws.  the divorce decree may state that X gets to claim the children on their tax return even though they are not the custodial parent (NCP).  the IRS says only the custodial parent can claim the children unless they furnish the NCP with form 8332 which must be submitted by the NCP with their 1040.

so make sure this is covered in the decree and if it's the NCP that gets to claim them make sure there's a provision for providing the 8332 or its replacement would the IRS come up with a new form and number.

if the tax laws are ignored the taxpayer faces additional taxes penalties and interest. if the court is ignored i suppose that taxpayer could find out what a cell looks like from the inside.

.       

[Critter-3]

Adult children are NOT addressed in a divorce decree so that is immaterial ... the IRS rules on the custodial parent is the ONLY determining factor to claiming an adult child. 

[xmasbaby0]

And the child tax credit is not a factor or concern since both kids are over the age of 18.   

[Bsch4477]

Note that Form 8332 must be mailed. It can’t be efiled. 

[Critter-3]

From 2018 thru 2025  there is no dependent exemption to waive  however the Education credit is released to the non custodial parent via the 8332  so the custodial parent needs to take that into consideration ... if they cannot use it and the other parent can then that may be the better choice.  Talking to each other is always wise.